(134392) DJ. 73715 750 4,70 Hw.

NOTHING TO BE WRITTEN IN THIS MARGIN

{

Registry No.

"URITY CLASSIFICATION

Top Secret.

Secret.

Confidential,

Restricted. Unclassified.

PRIVACY MARKING

In Confidence

DRAFT

To: Dr. C. W. Chuang,

President,

The Chinese Manufacturera Association of Hong Kong, C.M. A. Building,

64-65, Connaught Road, C, Hong Kong.

Type 1 +

From

The Chancellor of the Duchy of Lancaster

Telephone No. & Ext.

Department

Thank you for your letter of 11 September in

which you expressed, on behalf of your Association,

concern about the possible effect on Hong Kong of

our entry into the European Communities. I welcome

this opportunity to reply to some points you mised.

As a dependent territory of the United Kingdom,

Hong Kong is eligible for association with the

enlarged Communities under Part IV of the Treaty

of Rome. However, as you are no doubt aware,

the present Community indicated their unwillingness

during the 1961-3 negotiations to agree to her

being associated in this way. This has not

deterred us during this round of negotiations

from once again asking for association for Hong

Kong under Part IV. But you will appreciate that

the agreement of both sides is necessary for

successful negotiations.

17.

Your letter suggests to me that you are none

too optimistic about the prospects of this. The

British Government also has been considering the

question of how to provide for Hong Kong's interests

in the event of HK association being denied her.

We take the view that our main objective should

be to prevent discrimination against Hong Kong in European markets to the advantage of her trading

Because of this we have been active in

rivals.

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