CYPHER/CAT A.

CONFIDENTIAL

DIATE FOREIGN AND COMMONWEALTH OFFICE

TELEGRAM NUMBER 722

287

TO HONG KONG.

26 OCTOBER 1970.

(EID)

pa

CONFIDENTIAL.

26180AZ.

PERSONAL FOR GOVERNOR.

FRAME.

285

Kale

ADDRESSED TO HONG KONG TELEGRAM NUMBER 722 OF 26 OCTOBER REPEATED FOR INFORMATION TO CODEL BRUSSELS.

YOUR TELEGRAMS NOS. 738 AND 745: HONG KONG AND EEC, KICO/12

284

(285) 285)

WE REGRET ANY MISUNDERSTANDING THAT HAS ARISEN BETWEEN US ON TACTICS FOR HONG KONG'S INCLUSION IN THE UNCTAD SCHEME. BUT WE BELIEVE, AND CODEL BRUSSELS SUPPORT THIS BELIEF, THAT WE MUST CONTINUE TO PRESS THE SIX BOTH AT THE NEGOTIATING TABLE AND BILATERALLY IF WE ARE TO

ACHIEVE THAT INCLUSION WHICH WE ALL SEE AS SO IMPORTANT TO HONG

KONG.

2. THE MOST TELLING ARGUMENT WHY THE SIX SHOULD INCLUDE "HONG"KONG"

IN THE GENERALISED PREFERENCES SCHEME IS DIRECTLY LINKED WITH THE ENLARGEMENT OF THE COMMUNITY. THIS ARGUMENT GOES: IF HONG KONG

WERE EXCLUDED BY THE COMMUNITY, SHE WOULD ALSO BE EXCLUDED BY THE U.S.

JAPAN AND POSSIBLY OTHERS FOR THAT MATTER. THE EXCLUSION OF

HONG KONG WOULD CARRY THE IMPLICATION THAT DEPENDENT TERRITORIES

WERE TO BE TREATED AS THE RESPONSIBILITY OF THE METROPOLITAN POWER.

HONG KONG MIGHT THEN IN THE LIGHT OF THE FINAL OUTCOME OF

NEGOTIATIONS, BECOME A CHARGE ON THE ENLARGED COMMUNITY. ON THE OTHER HAND, IF HONG KONG WERE INCLUDED IN THE OPS BY THE COMMUNITY (SUBJECT, IF NECESSARY, TO A PRO-VIGO THAT SHE SHOULD ALSO BE INCLUDED BY THE U.S.) THE LIKELIHOOD THAT SHE WOULD BE INCLUDED BY

/THE

CONFIDENTIAL

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