CONFIDENTIAL
BRITAIN AND THE E.E.C.:
BRIEF FOR SECOND ROUND OF CONSULTATIONS WITH
HONG KONG OFFICIALS
OBJECTIVE
two
At the end of the last round of consultations, which were held in London from 10 to 12 July, it was agreed that a further round should be held about 2/months later. The object of the second round, as of the first, will be to discuss with Hong Kong officials the steps which we might take in negotiations with the Community to safeguard Hong Kong's essential interests. The talks will continue to be entirely without committment. The final decision on the safeguards which we should try to secure for Hong Kong rests with the British Government and must be taken in the context of our overall negotiating position and tactics, BACKGROUND
2.
The background information on Hong Kong trade and on the likely attitude of the Six contained in paragraphs 3 to 8 of E‚Ü‚R.(0) (67) 97 of 7 July remains valid.
POINTS ARISING FROM THE PREVIOUS ROUND
OF CONSULTATIONS
3. The U.K. record of the previous round, which was not shown to Hong Kong officials, has already been circulated. At the conclusion of those consultations, a short agreed note was also approved by both Delegations, and a copy is at Annex A.
4.
Poom these papers it is clear that the Hong Kong Delegation are likely, during the next round, to wish to discuss the following points
(a) the effect of U.K. entry into the E.E.C. on Hong Kong's
rights under the G.A.T.T.
(b) Textiles
(c) Hong Kong's other exports
(a) Theoretical possibilities for dealing with Hong Kong's
problems in the context of the U.K. negotiations with the Six, notably:
(i) to seek no special arrangements for Hong Kong's trade,
and to accept that the common external tariff will be applied to her exports to Britain.
(ii)
to seek special arrangements for a more favourable rate of application of the common external tariff
than the rate generally applied to Commonwealth
exports to Britain.
(iii) continued preferential access on a limited scale
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to the British market.
CONFIDENTIAL
/(iv)
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