CONFIDENTIAL
6.
Sir A. Snelling recalled the provisions which had been
envisaged for India, Pakistan and Ceylon at the end of the
previous negotiations; he said that the U.K. hoped that the
Six would be prepared to accept a similar package in Britain's
second approach to Europe.
COMMONWEALTH PREFERENCES
7
Mr. Haddon-Cave said that his Government had assumed that
the whole Commonwealth preference system would be gradually
dismantled following British entry. Sir A. Snelling said that
Britain accepted that the Commonwealth preferences which she
herself enjoyed in many Commonwealth countries would come to an
end;
but there were other areas of inter-Commonwealth trade,
based on Commonwealth preference, which need not necessarily be
affected. Mr. Haddon-Cave said that outside Britain, the
Territory enjoyed considerable preferences in New Zealand. In
1966 out of SHK 65 million worth of trade SHK 52 million worth
was given preferences. She also enjoyed preferences in Malaysia,
Singapore, Jamaica and Trinidad. Although Commonwealth
preferences were based on multilateralism, Hong Kong had assumed that the withdrawal of the lynchpin (i.e., Britain) would lead
to the collapse of the system. Sir A. Snelling said that in the
negotiations Britain would be pressing hard for the safeguarding
of New Zealand interests; she might therefore be able to influence
New Zealand to continue preferences on Hong Kong goods. However,
Hong Kong's exports to New Zealand were industrial and the recently
ratified Australian/New Zealand Free Trade Area Agreement was
mainly based on trade in industrial goods; this could result in
Australian pressure being brought to bear on New Zealand to
terminate the preferences she accorded to Hong Kong.
Mr. Haddon-Cave said that this was unlikely;
the bulk of
Hong Kong's trade with New Zealand was in textiles and Australia
did not have a competitive textile industry.
CONFIDENTIAL
18.