HORD GORCHY-MODI

PLORER 1975

CONFIDIA PIAL

(chod 1 HKK 6/548/2

1 1

SUTINKA MI M JEL GOVERNOR OF HONG KONG:

BRIEF KO. 11

HONG KCNC/25C BLATITE AGREEMENT

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1.

(a)

Lord Gorony-Roberts may like to take the opportunity of his discussion with the Governor to make the following points:

We consider that the EC/Hong Long agreement was a good one from Hong Kong's point of view. We noticca that the Governor said the same in his address to

the Legislative Council last month. Thanks to the skill of the Hong Kong negotiators, Hong Kong should enjoy substantially enhanced and assured access to the Community market.

(b)

We know that Hong Kong has given a different interpretation to the agreement as it applies to 1975 from that given by the Commission and all Member States of the Community. We stand firmly by our interpretation. However, we believe it is unvise to continue what has become a theological dispute and it would be unfortunate if the lesser matter of

transitional arrangements for 1975 caused difficulties in the smooth operation of the agreement as a whole. We believe that Hong Kong's 1975 exports to the Community in a number of categories are causing serious difficulties to several Member States. Community has therefore requested consultations ith Hong Kong to resolve these practical difficulties. The first round in Hong Kong was inconclusive. ... hope the second round, due to begin in Brussels on 15 December, will be more successful.

The

CCHFILA, TAL

/(c)

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