TNAG-0938-FCO40-1157-Visit-of-John-Nott--Secretary-of-State-for-Trade--to-Hong-Ko-1980 — Page 200

NICS' domestic markets. It equally touches the preferential

advantages which all developing countries currently enjoy through

the Generalised System of Preferences. It is clearly right for the

European Community, and other GSP donors, to continue these tariff

preferences

for the benefit of the poorer countries of

the Third World. What is increasingly being questioned is whether

the NICS require the same special help. Their ability to compete

effectively has been established beyond doubt. Their national

wealth, in terms of GNP per head, is in certain cases approaching

that of some OECD countries. We ask them to recognise that they no

longer need, and cannot expect, an indefinite continuation of GSP

benefits. Such benefits should increasingly be concentrated on the

less prosperous countries of the developing world.

12.

In

Secondly, we have to ask all developing countries and particular

the NICS - to recognise the social problems which can arise if

particular sectors are overwhelmed by massive import penetration.

these cases - and so far they have been largely confined to a few

particularly sensitive sectors import restraints may be necessary

to allow adjustment to proceed at a socially tolerable pace.

As you

know we are seeking clear recognition in the GATT of the right in

certain circumstances to take selective safeguard action.

No purpose

-

is served by restricting all world trade in a particular product to

tackle a problem deriving essentially from a single new supplier. Non-

discriminatory action in these cases is unnecessarily damaging to other

suppliers - developing as well as developed."

13. Special sectoral arrangements have long been needed to tackle the