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not yet reached a decision on what the negotiating objectives

should be for Hong Kong and what was said at the meeting must

be without commitment.

3. We had formally applied to join the Community in May.

More recently the Foreign Secretary had made a full statement

on the British case at the W.E.U. Council meeting in

The Hague on 4 July.

follows:

Paragraph 36 of his speech read as

"During the 1961-63 negotiations between the Community

and Britain it was provisionally agreed that, with one

or two exceptions, Association under Part IV of the

Treaty of Rome would be appropriate for our Dependent

Territories. We trust that you would still agree that

for these Territories this is the best arrangement.

should discuss together the position of any Dependent

Territories for which association is not appropriate.

This covered in one way or another the position of all our

territories, including Hong Kong.

We

11

40 In 1961-63, no provisional agreement had been reached

before the negotiations ended. The Six had rejected the

original British proposal that Hong Kong should be associated

with the enlarged Community under Part IV of the Treaty of Rome.

They did not consider that Association was appropriate for a

Dependent Territory with well developed manufacturing industries.

5. The British proposal on the table at the end of the

negotiations had contained a number of elements. On cotton textiles

British imports from Hong Kong were to be accorded the same

treatment as imports from India, Pakistan and Ceylon; this

would involve the gradual application of the c.e.t. to imports

of these goods from Hong Kong. A remedial procedure would

operate if, as a consequence, exports of cotton goods from

Hong Kong to the enlarged Community fell below agreed base

levels related to the level of recent imports.

Britain's imports

/of

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