COMME DEREMIAL
BRING NO. 9
VISIT OF MINISTER OF STATS FOR COʻLICHWEALTH AFTALES
TO HONG KONG
OCTOBER 1967
Cormon Market
Consultations are taking place with Hong Kong to diucuns ways and means of negotiating with the Community safeguards for Hong Kong's essential interosto. The first round took place in London on 10th - 12th July (a note is attached); the second round, again in London, will begin on
24th October, Tho talks are entirely without commitmont. The final decision on the safeguards which we should try to secure for Hong Kong roats with H.M.G. and must be taken in the context of our overall nogotiating position
and tactics.
2. The Hong Kong delegation have a realistic approach and are woll aware of the difficulties we are likely to encounter with the Six. They recognise that Association and a Morocco-typo Protocol are both unmogotiable. They recognise that richts of access to tho Community markets are of greater importance to Hong Kong than tariff løvols and set great store by the preservation and continued exercise of thoir G.A.T.T. rights. They are koonly aware of the dangor that any roquest to the Six for special arrango monta for Hong Kong is likely to stimulate the lattor to seek protoction from Hong Kong competition o.g. by a demand for a market disruption clause or sovere origin criteria.
3. The preservation of Hong Kong's G„A.T.T. rights will be in the forefront of the rogumod discussions. We might find it difficult to speak up in G.A.T.T. in support of Hong Kong against a follow mombor of the Community. We have therefore been examining the possibility of devolving on the Colony full autonomy in the conduct of its commercial relations, so that it could bocomo a contracting party to the G.A.T.T. in its own right. But the preliminary views of the Foreign Office are that this could produce a strong reaation from the C.P.G., a viow which we understand is shared by the Hong Kong.
4. In discussions with officials, the Minister will wish to show awareness of the issues noted in paragraphs 2-3 above, expressing the hope that the discussions in London will load to agroemont on the safeguards to be sought for Hong Kong in any negotiations. In public, tho Minister might refer to the detailed discussions in progress with representatives of Hong Kong and again express the hope that those will lead to a full understanding of Hong Kong's special interests in the negotiations. In discussion with
/unofficial
CONFIDENTIAL
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