F: EFFECT OF 1992 ON HONG KONG

RESTRICTED

Removal of internal barriers by 1992 must not mean creation of

new external ones. No question of fortress Europe.

Single market is about liberalisation and competition, not

protection. It means opportunities for EC's trading partners.

Increased economic activity will lead to increased demand for imports and cheaper exports. Exporters to single market also

benefit from economics of scale deriving from eliminating trade

barriers.

RESTRICTED

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