CONFIDENTIAL
Lesert X1 7 12/12
We
6. As regards the use of Hong Kong's public
purchasing policy as a bargaining counter, we
have done a little preliminary research.
find that the Hong Kong Government's recurrent
and capital expenditure in 1966/67, after
deducting personal emoluments and pensions, is
estimated at nearly £79,000,000. The present
practice of the Hong Kong Goverment is to buy
in the cheapest market, and to refrain from
using Government purchasing power to obtain
export outlets. We do not see why, if Britain
joins the E.E.C. and Hong Kong thereby suffers
But it
and cannot get redress from the enlarged
Community, Hong Kong should not use such
weapons as are then available to her.
would be awkward for the British Government
if Hong Kong begar. to discriminate between
members of the enlarged Community only after
Britain had joined. Britain might be requested
to call the unruly Colonial Government to heel,
which presumably could be done if the Colony
did not enjoy tariff autonomy (see the following
paragraph). It would therefore be better that
Hong Kong should initiate, before Britain joins
the Community, any policies which it may want to
pursue after Britain joins. It seems reasonable,
irrespective of Britain joining the Community,
/that