make our point before the Council has taken any
decisions on the proposals now tabled.
A further argument on the side of early protest
and one with which I imagine you will agree is that it
would be preferable both for Hong Kong and ourselves to make any representations to the Community before
negotiations for our own entry.
complicated
Inevitably these
negotiations will be embarrassed to some extent by the
need for adjustments in favour of our dependent terri-
tories but if we can get some of these adjustments out tories,
of the way first that might be to the advantage of all
concerned.
5.
Dept.
I must emphasise that we have not yet consulted
Hong Kong. We know that when these discriminatory
proposals were tabled the Counsellor for Hong Kong's
commercial affairs in Brussels was strongly in favour
of a formal protest. But in recent discussions with
David Jordan from the Hong Kong Ministry of Commerce
and Industry it appeared the Hong Kong Government had
not yet decided. But however unlikely it is that the
community will have established its common commercial
policy by the end of the year, as it should have done
according to the Treaty of Rome, we see advantage in
making our move in good time.
to
We must leave it to you to suggest what the con-
tent of any GATT protest should be. we
We are in no lew, is as I have solid, is
Our own
view,
doubt, as I have said, that Hong Kong's GATT rights
would be infringed by these quantative restrictions but I should be glad if
restrictions/but
you
On the other hand we believe that when Ernst was in
Hong Kong recently he alluded to the possibility that
these restrictions were justifiable under the contro-
N.P. 7% versial Article 19 of the GATT. On the basis of agreed
and conclusions with yourselves about the form of content
would confirm this.
/ of