(68/4)

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Rm 318

Ro R pse $8301"

Mr. I. Brown,

Hong Kong Department,

69

Reference..

Dependent Territories Division.

Thank you for sending me your draft letter to the Board of Trade about Hong Kong interests in the Anglo/Benelux Agreed Minute on Trade.

2. We certainly agree with your line throughout but I should like to make two suggestions which might be put to the Board of Trade as amendments to their draft brief. Firstly, at the end of paragraph 4 of your letter, it would be useful to give the Board of Trade a form of words regarding the need to treat Hong Kong the same as the other Dependent Territories. We could say, "I suggest that the whole of paragraph 6 should be deleted from the second sentence beginning, 'If the Benelux countries

and insert a new sentence as follows, 'If the Benelux countries react strongly against the inclusion of the United Kingdom Overseas Territories because of Hong Kong's position, we need not insist on this point and could agree to the removal of the proposed reference to the Overseas Territories'". Similarly, in paragraph 5 of aveyr letter, you might suggest that paragraph 3 of the draft brief should be extended by the addition of the following sentence after "1st October, 1962" -

'Having introduced these restrictions under the pro- visions of the Long Term Arrangements, the Benelux countries might be apprehensive about including Hong Kong, along with the other Overseas Territories, in the application of the Agreed Minute on Trade for fear that this would give Hong Kong the opportunity to get round the restrictions already placed on imports of cotton textiles. Apart from cotton textiles, Hong tad Kong has no other active trade interests in the

Benel

"countries'.

3.

Either Mr. Smith of this Department, or myself, or, perhaps, both, will attend the meeting on 12/13 December, and if you feel that you wish to be present to look after Hong Kong's interest we should be happy to team up with you.

P. Morrice

(P. Morrice)

Common Market Department 30 November, 1967.

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