UNCLASSIFIED
BACKGROUND BRIEF NO. D 19. HONG KONG
Note by the FCO
1. The Community have agreed in the negotiations that the
United Kingdom's dependent territories should be associated
with the Community under the arrangements set out in Part IV
of the Treaty of Rome. There are two exceptions to this.
Gibraltar and Hong Kong. Hong Kong is an exceptional dependent
territory. Its per capita income is second only to Japan in
the Far East at around £300 per annum.
only about £18 in India for example.)
industrially based and, for these reasons, it would be inap-
propriate for her to be associated with the Community, since
the arrangements for association are designed essentially to
meet the requirements of developing countries with little or
no industry.
2.
(This compares with
Hong Kong's economy is
Domestic exports from Hong Kong have risen startlingly
over the last few years. Growth over the period 1968-1969
reached 25%. In the following two years it was 18% and 10%
These are remarkable growth figures.
respectively.
3. In view of the important industrial considerations in
Hong Kong it was therefore felt that the Colony's best interests
would be served by reaching an agreement with the Community
that it should be included in their system of generalised pref-
This was agreed and, although there are important
erences.
/exceptions
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