Mr. N. Smith

CONFIDENTIAL

Ś had not heard

This argument before.

Hong Kong's interest in Britain's joining

the European Economic Community

Mr. Philip Haddon-Cave of the Hong Kong

Government's Trade Department called on me at his

own request on 24 January.

2. In the course of a prolonged discussion on

various trade matters he asked why it was that in all

J

generates ention

the official statements by the British Government,

there was a reference to British agriculture and

New Zealand interests as being the only real problems

facing Britain's entry: there was no mention, of the

changes involved in British commercial policy

(e.g. the effect on Commonwealth Preferences or on

Britain's relatively liberal regime for the import

of cotton textiles). Mr. Haddon-Cave made it clear

that he was asking this question without

instructions from his Government and id not

necessarily expect a considered answer.

3. In reply I mentioned to him that I was, or

course, not in the Department that dealt with

Britain's entry into the E.E.C. As Mr. Haddon-Cave

would be aware, the British Government had said that

it would be necessary to safeguard Britains and the

Commonwealth's essential interests The Prime

Minister, however, among others, had made it clear

that it would be premature for Britain to disclose

what those interests were: it was bad tactics to

lay all one's cards on the table.

4. Mr. Haddon-Cave said that while he took the

point that the present stage of probes into Britain's

joining the E.E.C. might resem ble a poker game,

certain cards (namely British Agriculture and New

Zealand) had been mentioned as being in the hand:

did this not mean that there were no really other

/important

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