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the same kind of benefits for new products as the suggested
continuation of limited duty-free access to the U.K. market is
meant to give. We shall know much more about this before the second round of consultations with Hong Kong. A draft report by the O.E.C.D. Special Group will be inundated by 8 September; discussed at a meeting of Alternates on 18 September; and finalised by the Group on 26 and 27 September 7
cir created
15. If the Hong Kong Delegation should press the matter further, we could say that, if we were to consider putting to the Six a proposal for continued preferential access on a restricted basis, it would certainly have to be limited as follows.
(1)
It would have to apply to a specified range of
commodities, which Hong Kong does not now export in significant quantities.
(ii)
(iii)
The period for "market research" would have to be limited.
The measure of reduction of the common external tariff
could not be too great.
(iv) Duty quotas or other limitations on quantity would have
to be provided for.
If, in the light of these comments, Hong Kong officials again pressed us on this matter, we should agree to submit it to U.K. Ministers for consideration; but we should not attempt to forecast their
decision.
To propose a bilateral Trade Agreement between Hong Kong
and the enlarged Community.
16. The Hong Kong Delegation themselves took the view at the last
round of talks that there was no merit in this proposition.
A unilateral declaration by H.M.G. at the time of signature of the accession documents, placing on record the U.K.'s responsibilities for her Dependent Territories.
17. At the first round of consultations, Hong Kong officials asked that we should consider the possibility of Her Majesty's Government
making a unilateral declaration, at the time of signature of the instruments providing for United Kingdom accession to the European Economic Community, making it clear that her responsibilities for her dependent Territories would be unaffected by accession. Hong Kong officials explained that they would be particularly interested in the possibility of such a declaration being made in the event that it was decided not to seek special arrangements for
Hong Kong. In such a case, Hong Kong would be the only Dependent Territory for which nothing specific was being sought from the Six; all the others would be covered by our requests for Association and/
or for special arrangements for Commonwealth sugar; this would be likely to make a bad impression in Hong Kong and lead to a dangerous decline in morale. A unilateral declaration by H. M.G. on the lines proposed would be helpful. Hong Kong officials made it clear that
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