5 L Edwards Eзq CLG CRE 2
Department of Trado
1 Victoria Street London SW1
CONFIDENTIAL
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RESE RECIC
2'5 JUN 1974
HKK &/ SGB)
12 June 1974
There is at least one issue arising out of my visit to Hong Kong on which I should report to you right away, sinca it needs to be taken into account in the briefing John Cohen is preparing for Er Deakins before he attends the Dragon Boat Dinner on 24 June.
There is no doubt that opirion in Hong Kong, both within Government and in the business community (including the Chinese business community) is broadly in fevour of Britein remaining in the European Community. Of course they want and expect Britain to press very strongly indeed for the removal of the discrimination against Hong Kong in the present GSP; and my car has been bent more vigorously on this subject than on any other (I replied on lines agreed in advance with John Ingram, and will report to him in greater detail on my return). But on the wider issue they see greater advantage to themselves in Britain within the Community, ablo to put the Hong Kong case and to persuade (we hope) the Eight to be more liberal, then in Britain coming out and able to apply whatever commercial and tariff policies we may ourselves determine to trade with llong Kong, korcover, opinion ia Hong Kong, and particularly Chinese opinion, reflects tho support or the Goverment in Peking for a strong and enlarged Community to act as a counter-weight to the Soviet · Union. Local Chine-watchers say that it was his responsib- ility for British entry into the Community more than the reicing of Missions to Ambassador levol - and certainly not a preference for ene British politicul perty rather than another that led to the good reception Mr heath was given on his recent visit to China.
While I am writing, three other brief points of current interest to your Division, for reasons which will be
apparent to you:-
CONFIDENTIAL
/a) ICL India
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