CONFIDENTIAL
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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 C. Y. Kwan asked if imperial preferences would end as soon as
Britain entered the Common Market. Mr. Stewart said that membership
of the E.E.C. would involve the end of imperial preferences, 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 preferences than others. He instanced the case
of the 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.
a
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 A. 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.
/Mr. Gordon
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