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W(B)L 51-7406
CONFIDENTIAL
Essociation of our dependent territories
and including the need to discuss the position
of any dependent territories for which asso-
ciation was not considered appropriate.
Tventually the Six agreed in principle to
association for all our dependent territories
with the exception of Hong Kong. This they
saw as a "special problem" requiring further
study in depth. This study is now under
way at Deputy level.
12.
Although association for Hong Kong has
now been all but formally rejected by the
Six, there is a strong argument for trying to keep open for the future a Part I option.
If the UNCTAD Preference Scheme collapses
after its ten-year trial period, and if Hong
Kong during that period should draw benefit
From the Scheme, at the end of ten years
Hong Kong would still be left with nothing.
It therefore might be worth seeking come
purely formel Part I duty-free coverage,
Ne
Perhaps for everything not covered by or
specifically excluded from the community's
preference offer, should sach an offer
materialise. This would in fact be meaning-
less in terms of trade since Hong Kong
sroduces no raw materials. But it could be
ong way of holding open the Part IV option
for the more distant future.
13. While the Six do not yet appear to
.Ev2 perched any conclusions on poseiole
/sclutions
CONFIDANT TAL