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a third country would, for practical and economic

reasons, be unpalatable to the Community. Moreover,

there are likely to be doctrinal objections,

principally from the Commission, to any arrangement

which seemed to preserve something of the United

Kingdom's independent status in the GATT in fields such

as tariff negotiations where the Community operates as

a single unit with the Commission as its appointed

spokesman.

The Community are likely to see the

problem primarily as a policy, rather than a legal,

issue.

Tactics and Timing

12 Our delegations in Geneva and Brussels agree

that it would be advisable for policy to be clarified

between Whitehall and Hong Kong before approaching the

Community. Having made up our minds, we should then

raise the issue with the Community fairly speedily as

it would be unwise and perhaps dangerous to wait

for the situation in 1973 to force a decision.

Geneva would like to have authority to discuss the

question in confidence with the GATT Secretariat as

soon as possible.

UKMIS

Hong Kong and Indian Ocean Department

August 1972

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