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exports were shown to be causing market disruption in the
Community.
The Attitude of the Six
8.
Hong Kong was not mentioned during the tour by the
Prime Minister and Foreign Secretary of the capitals of the Six,
and we have only indirect indications of what the attitude of
the Six will be. It is significant that, in the 1961/63
negotiations, the Six, prompted by the French, would not agree
to including in a Conference text references to British
responsibility for the territory and the need to have regard
for the living standards of its inhabitants, unless mention
was also made of the need to protect industry in the Community
from damage resulting from imports of all kinds from Hong Kong.
Also, in more recent discussions on possible ways of helping
developing countries to expand their exports, the French, in
particular, have made it clear that they would not regard
Hong Kong as a developing country for the purpose of any
concessions which might be granted.
The Attitude of Hong Kong
9. Hong Kong's trading relationships with the Community, both
in the context of possible British membership and other ways,
have been the subject of public discussion for some time, and
the present British application has served only to make this
more urgent. At one time last year, Hong Kong showed interest
in concluding a trade agreement with the Community, independently
of British membership, but this was not pursued.
10.
The anxiety of the Hong Kong Government about the
implications of British membership of the Community has been
concentrated in three areas: first, the effect on Hong Kong's
competitive position in the British market of loss of
preference and to the establishment of reverse preferences in
favour of the Community;
second, the danger that after entry
Britain might be required, or might her self decide, to adopt
/a more
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