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British entry, remedial action should be taken was, at the time of
surget to
the eakdown, faca counter-proposal by the Six that remedial action should also be taken if any Hong Kong exports were shown to be causing market disruption in the Community.
The Attitude of the Six
7. 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
from Hong Kong. Also, in more recent discussions on possible ways of helping developing countries to expand their exports, the French
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
8. 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.
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.
At
9. 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 establish-
ment of reverse preferences in favour of the Community; second, the
danger that after entry Britain might be required, or might herself
/decide
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