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Common Market themselves. There was good reason to think that negotiations would start in the summer. The Six still had some difficulties to sort out, but he hoped that these would be settled. The British Government had made it clear that they would not go in on any terms but that they would enter negotiations in good faith, in good hope and with the determination to succeed. They were conscious of certain problems for the Commonwealth, including Hong Kong's problems. He could not forecast how these would be dealt with, but Hong Kong's problems would be constantly in our minds.
4. Sir Cho-yiu Kwan asked if imperial preference would end as soon as Britain entered the Common Market. Mr. Stewart said that membership of the EEC would involve the end of imperial preference, but the exact timing would depend on the length of the transition period, which in turn would depend on the negotiations. Dr. Chung said that it was not only a matter of timing; some industries were better able to face the ending of imperial preference than others. He instanced the case of a factory which had been making watch movements, but which had been forced to close after the establishment of EFTA with its free entry into Britain of Swiss movements. He hoped Britain would do her best for Hong Kong. Mr. Stewart said that he could give this assurance.
5. Mr. Herries asked if there would be real consultation with Hong Kong. Mr. Stewart said that he regarded it as the duty of his Department to look after the interests of the Dependent Territories, including of course, Hong Kong. Sir Albert Rodrigues hoped that there could be consultation with Hong Kong before commercial agreements were made with other countries. Mr. Stewart said that he regarded it as important that the merger of the Commonwealth and Foreign Offices should not reduce the opportunities for consultation.
6. Mr. Gordon quoted a negotiation with Canada during 1969 about cotton and man-made fibres in which the Board of Trade had suddenly decided that Hong Kong should not negotiate over man-made fibres. He would like to know, and he hoped that other countries could be given to understand, that Hong Kong had the power to conclude contracts, within a framework agreed with the United Kingdom. Mr. Stewart said he believed that guidelines were being worked out. There were occasions when it was sensible for the United Kingdom to speak for Hong Kong in international bodies and there were inevitably occasions when United Kingdom and Hong Kong interests conflicted. Mr. Gordon said that he recognised that the United Kingdom must speak for Hong Kong in international bodies and in GATT. But after that Hong Kong's negotiators should be allowed to negotiate for Hong Kong. Mr. Murray interjected that Mr. Carey of the Ministry of Technology had discussed the question of man-made fibres at length with officials of the Hong Kong Government the previous day. The negotiations with Canada to which Mr. Gordon had referred had in fact raised a question of principle of world-wide application, whether cotton and man-made fibres should be linked, and it was for that reason that the Board of Trade had stepped in. Mr. Herries said that there had been a similar problem in negotiations with Scandinavia. What was needed was an opportunity for full consultation, so that they could be sure that Hong Kong's views were known and taken into account and that Hong Kong was not merely overruled by the Board of Trade.
7. Mr. Chung quoted the case of the Textiles Council's Report. The Hong Kong Government had not been told that there was a deadline for consideration and had in fact been given only two weeks to consider the report. Indeed a memorandum had arrived on the Saturday and the announcement had been made on the Monday, so that it was clear that the Board of Trade had not considered Hong Kong's views.
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