CYPHER CAT A
CONFIDENTIAL
IMMEDIATE GOVERNOR HONG KONG
TO F.C.O. LONDON
TELEGRAM NUMBER 738
23 OCTOBER 1970
CONFIDENTIAL 230432Z
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ADDRESSED TO FOREIGN AND COMMONWEALTH OFFICE LONDON TELEGRAM
NUMBER 738 OF 23 OCTOBER 1970 AND REPEATED FOR INFORMATION TO
UKDEL BRUSSELS, AMBASSADOR BRUSSELS (FOR DODGE) AND UKMIS GENEVA (FOR JONES).
/AICK 6/6 101)
YOUR TELEGRAM NUMBER 69%: HONG KONG/EEC,
ARE 1/102) IN MY FLASH TELEGRAM 712 WE WERE UNABLE TO SET OUT FULLY
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OUR VIEWS ABOUT THE RELATIONSHIP BETWEEN NEGOTIATIONS ON GENERALISED
PREFERENCES AND ENLARGEMENT'' NEGOTIATIONS AND, IN PARTICULAR, THE DESIRABILITY, AS WE SEE IT, OF KEEPING THEN AS SEPARATE AS POSSIBLE.
S. IN THE FIRST PLACE, THE ARGUMENT ABOUT GENERALISED PREFERENCES
IS ONE INVOLVING NOT ONLY THE E.E.C. BUT ALSO JAPAN AND THE
U.S.A. AND THEREFORE INVOLVES GREATER DANGERS FOR US THAN THE
POSSIBLE LOSS OF PREFERENCES (WHETHER COMMONWEALTH OR GENERALISED) IN BRITAIN ALONE. WE THINK IT DESIRABLE THAT THE DIPLOMATIC OFFENSIVE TO BRING ALL THREE ''DONORS'' INTO LINE SHOULD BE, AS FAR AS POSSIBLE, A CONCERTED ONE. THE IMMEDIATE DANGER WE
HAVE BEEN TRYING TO AVERT IS THAT ONE OF THESE WILL ANNOUNCE
THE EXCLUSION OF HONG KONG FROM THEIR OFFER THUS TRIGGERING
CFF A SIMILAR DECISION BY THE OTHERS. ONLY IF IT WERE CONCEIVABLE
THAT A FAVOURABLE
DECISION WOULD BE REACHED IN ENLARGEMENT NEGOTIATIONS EARLY
ENOUGH TO INFLUENCE U.S. AND JAPAN DECISIONS, WOULD WE SEE
MERIT IN LINKING THE NECOTIATIONS IN THE E.E.C. NOW.
3. SECONDLY, FOR A NUMBER OF REASONS WE ARE RELUCTANT TO SEE
THE QUESTION OF GENERALISED PREFERENCES BECOME PART OF THE
ENLARGEMENT EXERCISE, AT LEAST AT THIS STAGE. WHILE IT IS TRUE THAT REFUSAL OF ASSOCIATED STATUS WOULD AGGRAVATE, OR RATHER FAIL TO PALLIATE, EXCLUSION FROM GENERALISED PREFERENCES,
AND INCLUSION BY U.K. ALONG WITH EXCLUSION BY THE E.E.C.
CAUSE PROBLEMS OF ASSIMILATION OF PREFERENCES IN THE CONTEXT
OF BRITAIN'S ENTRY NEGOTIATIONS, WE CONTINUE TO BE GENERALLY
OF THE VIEW THAT IT IS BETTER NOT TO PRESS THE E.E.0. FUR
POSITIVE CONCESSIONS TO HONG KONG IN THE CONTEXT OF BRITAIN'S
ENTRY, IN CASE IT SHOULD PROVOKE A DEMAND FOR, OR THE IMPOSITION
(F NEGATIVE RESTRICTIONS.
WOULDH11116/12
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CONFIDENTIAL
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