Dependent Territories: EEC

25. In our negotiations for entry to the European Community, we

have secured the agreement in principle of the Six to the association

under Part IV of the Treaty of Rome for those non-European territories with whom we have special relations as defined in the Treaty. (This

means in effect our dependent territories and the Associated States of the West Indies). This agreement applies to all territories apart

from Hong Kong, whose position the Six see as being of a different order to that of the other territories and whom consequently they wish to discuss with us in greater depth. We are pursuing these discussions

with the Community in Brussels, in close consultation with the Hong

Kong authorities.

26. Since Gibraltar is a European territory for whose external

relations the United Kingdom is responsible, she is covered by Article 227 (4) of the Treaty of Rome. The Six have agreed in principle

to her inclusion within the enlarged Community under that Article. We

are now engaged with the Community in seeking ways of arranging for

Gibraltar's free port facilities to be maintained in the event of her

inclusion.

If

with Spain

the Six.

pressed on the question of Gibraltar's future relations

Spain has concluded a preferential trade agreement with Depending on what arrangements are agreed with the Community

to cover Gibraltar's free port facilities, we should expect Spain to be

obliged to observe the terms of her agreement in commercial dealings

with Gibraltar.

27.

We believe that the arrangements we have made for our dependent territories will enable us to preserve and elaborate upon the already

close relations between ourselves and those countries.

11.

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