RESTRICTED
expanding Britain as a member of the Community will be a
better market for Hong Kong's exports.
Present Position
3. Although constitutional responsibility rests with the
British Government, in practice Hong Kong conducts its own
commercial relations over a wide field where its own interesta
are primarily concerned. Hong Kong has a Commercial Counsellor
attached to our Embassy in Brussels not accredited in any
way to our delegation to the EEC who acts as an informal
link between llong Kong and the EEC on day-to-day matters.
The position after Britain's Accession
4. Great care was taken during the enlargement negotistions
to ensure that no part of the EEC or Euratom treaties or of
the Treaty of Accession itself would apply to Hong Kong.
This principle is reflec ted in Article 26(2) and Article 27
of the Act of Accession.
5. There is no reason why these arrangements should not
continue after our accession to the EEC but Hong Kong eve
worried about what they call "the institutional arremata Geit
to be made "for dealing with Hong Kong's relationship with tha
Community" after our accession. They have asked would Hear
Kon; representatives still be able to deal with the Comineion:
and should "a clear channel" be established through which Hor
Kong could liaise with the British Government on any
difficulties that may come up?
Hong Kong's GATT relationship
6.
We have already had preliminary discussions with Hong
Kong on a linked issue that of Hong Kong's GATT
B
RESTRICTED
/relationship