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WHERE H M G IS LIKELY TO BE AT A GREATER DISADVANTAGE THAN NOW SEMICOLON PARTICULARLY SO IF BRITAIN HAS ITSELF BY THEN ALREADY ACCORDED PREFERENCES TO OTHERS. THIS WOULD ENABLE THE SIX
TO CLAIM THAT BRITAIN WAS SEEKING AN ADVANTAGE FROM HONG KONG FOR WHICH THEY WOULD DEMAND A QUID PRO QUO.
4. I WONDER, THEREFORE, IF THE TIME HAS NOT COME TO TRY TO FORCE THE ISSUE ONE WAY OR THE OTHER, RECOGNISING THE RISKS IN DOING SO, BY A FORTHRIGHT DECLARATION BY H M G AT THE FORTHCOMING MEETINGS THAT, WERE OTHER MAJOR ''DONORS' TO EXLCUDE HONG KONG, THIS WOULD NECESSITATE A MAJOR REVIEW OF THE U.K. OFFER IN REGARD BOTH TO BENEFICIARIES INCLUDED AND PRODUCTS COVERED. IF IT WERE NECESSARY TO TRANSLATE THIS THREAT INTO ACTION, IT WOULD AT LEAST RESULT IN A BETTER BARGAINING POSITION IN THE CONTEXT OF THE ENLARGEMENT NEGOTIATIONS. I APPRECIATE THAT H M G MUST TAKE OTHER POLITICAL CONSIDERATIONS INTO ACCOUNT AS WELL AS HONG KONG'S ECONOMIC INTERESTS, BUT IT SEEMS TO ME THAT NO OTHER ACTION HAS ANY HOPE OF ACHIEVING ANYTHING AT THIS STAGE.
5. THE OUTCOME OF THIS PROBLEM WILL, OF COURSE, NECESSITATE
A FURTHER EXAMINATION. HERE OF THE IMPLICATIONS OF BRITAIN'S APPLICATION TO JOIN THE E.E.C. AND THE BEST TACTICS TO BE FOLLOWED FOR THE PROTECTION OF HONG KONG'S INTERESTS. I LOOK FORWARD TO AN OPPORTUNITY OF DISCUSSING THE SUBJECT WITH MR.RIPPON IN THIS CONTEXT.
( F C O PLS PASS TO BRUSSELS AND .GENEVA)
SIR D.. TRENCH
ཟ་ ་་་
/REPEATED AS REQUESTED/
INTERNATIONAL TRADE DISTRIBUTION
TR. POLICY D.
H.K.D.
E.I.D.
ADDITIONAL DISTRIBUTION -HONG KONG INT TRADE
COPIES TO:
CONFIDENTIAL
MR. 1. MORRIS
CRE I BOT.
Mr. DUNNETT, CRE BOT.