CONFIDENTIAL
All EFTA
in the capitals of the Five and by the E.E.C. Commission. countries have accepted the invitation to the meeting in London on 5 December and most will be represented at Head of Government level.
It is admitted that the initiative has not been welcomed in Paris
and it would appear that the French Government is still hostile to
Nevertheless, our entry to the Community for political reasons.
)
in view of the positive attitude now displayed by Her Majesty's
Government and all the governments other than France involved in a possible enlargement of the Community, it is not considered that the French attitude should be regarded as a reason for not proceeding.
The Prime Minister has stated that we mean business and it may be
difficult for the French to stand out against the wishes of all the
other countries involved.
3. It should be emphasised that no decisi on has yet been taken to
open negotiations. This will be decided in the light of the results
of the Prime Minister's and Foreign Secretary's visits. At that
stage Commonwealth governments, including Hong Kong, will be
consulted.
Hong Kong's Positi on
་*་
4. It seems clear that the Six will continue to maintain the
opposition to association for Hong Kong that they showed strongly
during the 1961-3 negotiations. They considered then that the
Colony's economy was too competitive with the industries of the
Community and too unlike the economies of the existing associated
States and territories. This means that the Six will undoubtedly
insist that the common external tariff should be applied by Britain
to her imports from Hong Kong, perhaps over a transitional period.
The exact length of this transitional period would be a matter for
/negotiation.
CONFIDENTIAL
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