CONFIDENTIAL

Brief No. 7

VISIT OF SECRETARY OF STATE TO HONG KONG

APRIL 1970

i

BRITAIN: HONG KONG:

The EEC

SPEAKING NOTES

Hong Kong and the EEC

Our entry into the EEC would, in the long term, alter the

pattern of our trade. It would affect the system of Common-

wealth preferences that operates at present. And while you in

Hong Kong have done a good deal to diversify your trade and to

develop new markets since our original move to join the

European Communities there do remain problems. I can assure

you that we shall have the interests of Hong Kong in mind in

our approach to the Community.

Difficulty of forecasting developments

It is not possible at this stage to foretell in any detail

how the position of Hong Kong may be altered by our entry to

the ETC.

We ourselves have found, in the publication of our White

Paper on entry, the difficulties of quantifying certain aspects

of the economic effects of accession.

Hong Kong's position could be affected by many factors yet

to be decided, some not related to our application, e.g., by

progress towards' a global scheme of generalised preferences for

developing countries; and the progressive liberalisation of

CONFIDENTIAL

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