CONFIDENTIAL

(f) A unilateral declaration by the British

Government, at the time of signature of the

accession instruments, following the precedents

of certain unilateral declarations made by

individual Member Governments of the existing

Community in 1957, which would place on record

Britain's continuing responsibilities for her

Dependent Territories, including Hong Kong.

Preferential access on a limited scale to the

(3)

U.K. market for certain new products for a short

period.

(h)

A bilateral trade agreement between Hong Kong

and the enlarged Community.

3.

In general Hong Kong's experience is that rights of access are of greater importance to her than tariff levels. The British Delegation explained that (a) had been rejected

by the Six in the last negotiations; and they were likely

to refuse it now.

As regards (f), this was a new idea which the British

They were also likely to reject (b).

Delegation had not yet considered.

As regards (g), Hong

Kong's main interest seemed to lie in continued preferential

access for new products, so as to assist the establishment

of new industries. After a short period, when an industry

had been established, preference could presumably be

witharawn.

4. It was generally thought that any request for special

treatment for Hong Kong by the enlarged Community was

likely to encourage the Six to seek protection from Hong

Kong competition in various ways, e.g. by the adoption of a stringent market disruption clause and/or severe origin

criteria. This might not be the case if Hong Kong were

included in general arrangements.

CONFIDENTIAL

15.

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