CONFIDENTIAL

mentioned do not qualify;

they were wrong, but should not

be disabused of their impression at this stage.

'

The UK

meanwhile would press that rules of origin should be

applied impartially to all beneficiaries.

1

4. As for 2(b), it was pointed out that while the UK.

would have to accept the EEC offer to Hong Kong aft

after

enlargement, and operate our GPS accordingly, this did not bind us on our future treatment of Taiwan and S. Korea,

which would be a matter for discussion when the UK scheme

was adapted to the EEC's after enlargement.

Other members

of the Community might very well want to safeguard them-

selves against disruptive imports from these countries.

5. Hong Kong officials agreed, subject to reference to

the Governor, the text of a statement which Mr Rippon

proposed to make in Brussels; and Mr Rippon sent a message (FC telegram to Hong Kong No 91) pressing the Governor to

accept. He was reluctantly prepared to do so (see his telegram No 64) though the words "in consultation with the

Government of Hong Kong" were excluded from the text which Mr Rippon used (Codel Brussels telegram No 72).

6. In effect, therefore, the Governor's very strong

hesitations were overridden by the just as strong view held

in London and in the Delegation in Brussels that nothing

better was negotiable and that acceptance was the best

possible means of securing access under the GPS to the much

more important US market. The Governor's fears of discrimi-

nation against Hong Kong after enlargement have been met. to

CONFIDENTIAL

/the

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