XN000022-1977-12-21 — Page 14

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WEDNESDAY, DECEMBER 21, 1977

HK NOT RESTRICTED IN TALKS WITH E.E.C.

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THE FINANCIAL SECRETARY, THE HON. PHILIP HADDON-CAVE TODAY ASSURED THE LEGISLATIVE COUNCIL THAT THE HONG KONG GOVERNMENT WAS IN NO WAY INHIBITED BY ITS CONSTITUTIONAL STATUS NOR WERE WE RESTRICTED IN THE CONDUCT OF THE NEGOTIATIONS WITH THE EUROPEAN ECONOMIC COMMISSION.

REPLYING TO A QUESTION BY THE HON. FRANCIS TIEN, HE SAID THAT THE GOVERNMENT WAS AWARE THAT HER MAJESTY'S GOVERNMENT WAS ONE OF THE E.E.C. MEMBERS WHICH INSISTED ON DISCRIMINATORY MEASURES AGAINST HONG KONG AND WAS ALSO AWARE OF THE BITTERNESS FELT BY THE PEOPLE IN HONG KONG AS WELL AS BY CONSUMERS IN E.E.C. COUNTRIES WHO WERE THUS DEPRIVED OF CERTAIN GOOD QUALITY HONG KONG PRODUCTS.

TURNING TO ANOTHER PART OF MR. TIEN'S QUESTION, MR. HADDON- CAVE SAID, +BEFORE AND DURING THESE PROTRACTED NEGOTIATIONS WITH THE E.E.C. WHICH WAS ACTING WITHIN A MANDATE HANDED DOWN BY THE COUNCIL OF MINISTERS OF THE COMMUNITY, THE GOVERNMENT WAS IN CONSTANT COMMUNICATION WITH HER MAJESTY'S GOVERNMENT THROUGH THE FOREIGN AND COMMONWEALTH OFFICE AND THE GOVERNOR PERSONALLY HAD

INTERVIEWS WITH SEVERAL MINISTERS IN SEPTEMBER AND NOVEMBER.+

HE NOTED THAT THE VARIOUS EXCHANGES, WRITTEN AND ORAL, WHICH TOOK PLACE HAD THREE OBJECTIVES.

+FIRST, TO ENSURE THAT HER MAJESTY'S GOVERNMENT UNDERSTOOD THE EXTENT TO WHICH HONG KONG WAS BEING DEPRIVED OF ITS RIGHTS UNDER THE MULTI-FIBRE AGREEMENT (WHICH IN ITSELF IS A DEROGATION OF OUR MOST FAVOURED NATIONS' RIGHTS OF ENTRY UNDER THE GENERAL AGREEMENT ON TARIFFS AND TRADE).

+SECONDLY, TO ENSURE THAT HER MAJESTY'S GOVERNMENT WAS AWARE OF THE IMPLICATIONS OF THE COMMISSION'S NEGOTIATING MANDATE FOR OUR GROWTH PROSPECTS AND FOR OUR NEGOTIATING POSITION VIS-A-VIS OTHER IMPORTING COUNTRIES.

+THIRDLY, TO PROTEST TO HER MAJESTY'S GOVERNMENT BOTH AS THE METROPOLITAN POWER AND AS AN INFLUENTIAL MEMBER OF THE COMMUNITY AT THE HIGHLY DISCRIMINATORY NATURE OF THE TREATMENT BEING METED OUT TO US. +

MR. HADDON-CAVE SAID THAT HE COULD SEE LITTLE POINT NOW IN MAKING A FURTHER PROTEST EUT IF THE UNCFFICIALS WISHED, HE SHOULD CERTAINLY SEE THAT THEIR FEELINGS CF DISMAY WERE FORMALLY CONVEYED TO THE SECRETARY OF STATE.

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