CONFIDENTIAL
NOTE OF A MEETING ON HONG KONG 7 JULY 1970
Copy No
10
Those present:
Mr Preston
Mr Sanders
Mr Toms
Mr Le Goy
Mr Kemmi s
Mr Woodhead
Mr Gildea
Miss Evans
Mr Robinson
Mr Laird
Mr Slater
Mr Peat
Mr Gregory
CRE 3 in the Chair CRE 2
CRE 2
Civil Aviation 1
CRE 1
CRE 1
CRE 3
CRE 3
FCO
FCO
Treasury
ODM Mintech
1.
BACKGROUND
At their discussion of the brief on Negotiating Aims for the Commonwealth, Ministers had asked that a paper be prepared on Hong Kong. The paper should set out the pros- pects facing Hong Kong on Britain's accession to the EEC placing the trade problem in the context of Hong Kong's economic and political situation as a whole. It should also cover the scope for retaliatory action damaging to the United Kingdom by Hong Kong and what action might be taken by the United Kingdom or the Crown Colony to mitigate the impact of our entry into the EEC.
2.
STRUCTURE OF THE PAPER
The paper might begin with a description of the Hong Kong economy followed by a statement of the worst possible case that might face the Colony, and an assessment of the effect this would have on her competitive position vis-a-vis other Asian suppliers. The scope for retaliatory action by the Colony might then be discussed and the paper might conclude with a discussion of the possibilities for mitigating the difficulties if the worst possible assumptions were realised. This would include the possibility and usefulness of granting various forms of special assistance.
3.
THE STRUCTURE OF HONG KONG'S ECONOMY
i. GNP (CRE 2)
ii.
iii.
Hong Kong's GNP and her position in relation to other ldc's should be set out.
INTERNAL CAPITAL RESOURCES (CRE 2)
The paper should discuss the availability of capital from the Colony's own resources to finance investment in existing and new industries and in its social services.
FOREIGN INVESTMENT (CRE 2 and Treasury if necessary)
The level and sources of foreign investment in the Colony should be included
CONFIDENTIAL