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NEGOTIATION INTO THE ENTRY NEGOTIATIONS RATHER THAN THE OTHER
WAY ROUND WE HAVE TAKEN UP THE WEAKER AND MORE VULNERABLE
NEGOTIATING POSITION, THIS DOES NOT MEAN THAT IT MIGHT NOT BE
NECESSARY TO LINK THEM LATER IN THE ENTRY NEGOTIATIONS SHOULD
OTHER APPROACHES ON THE G.P.S. FAIL.
3. 1 RECOGNISE THE FORCE OF THE ARGUMENT IN YOUR PARAGRAPH 2
BUT IT SEEMS TO ME THAT IT IS AN ARGUMENT WHICH IS BETTER FUT
TO THE E.E.C. AS ONE WHICH DEMONSTRATES THE DESIRABILITY OF
DEALING WITH THE G..S. ISSUE IN ADVANCE OF AND OUTSIDE THE CONTEXT
OF ENTRY NEGOTIATIONS, THEREBY SMOOTHING THE PATH OF THESE LATTER. I NOTE FROM PARAGRAPH 9 PF THE RECORD OF MR RIPPON'S CONVERSATION
ON 14 OCTOBER WITH SIGNOR MALFATTI THAT THE FORMER FUT THE POINT
IN VERY MUCH THIS WAY WHEN HE SAID:
"IT WOULD BE VERY HELPFUL IF HONG KONG COULD BE DEALT WITH
ADEQUATELY IN THE CONTEXT OF GENERALISED PREFERENCES, THEREBY
REDUCING THE SIZE OF THE DIFFICULTY FOR THE ENLARGEMENT
NEGOTIATIONS."
4. THERE IS ALSO THE QUESTION OF TIMING VIS-A-VIS U.S.A. AND
JAPAN SHOULD ENTRY NEGOTIATIONS BE PROLONGED: WHILE A FURTHER
POINT IS THAT IN THE EVENT OF FAILURE OF BRITAIN'S ENTRY NEGOTIATIONS
LINKING OF THESE WITH THE G.P.S. WILL INEVITABLY INVOLVE EXCLUSION
FROM THE LATTER: ALTHOUGH THAT WE WOULD HOPE IN THAT CASE TO
CONTINUE TO ENJOY PREFERENTIAL ENTRY INTO BRITAIN.
5. 1 WHOLEHEARTEDLY ENDORSE THE NEED FOR EARLY DISCUSSIONS.
THE FINANCIAL SECRETARY AND DIRECTOR OF COMMERCE AND INDUSTRY
COULD BE AVAILABLE FOR CONSULTATIONS ANY TIME FROM 9 NOVEMBER BUT, AS SIR DAVID WOULD LIKE TO TAKE PART, I SUGGEST THAT YOU FIX THE PRECISE DATE WITH HIM.
E
6. GRATEFUL YOU PASS COPY TO SIR DAVID.
(FCC PLEASE PASS IMMEDIATE TO CODEL BRUSSELS)
SIR H. NCRMAN-WALKER
EUROPEAN ECONOMIC AND
POLITICAL DISTRIBUTION:
E.I.D.
HONG KONG I.
DDDDD
[REPEATED AS REQUESTED]
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