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Dear Corley,
CONFIDENTIAL
COMMONWEALTH OFFICE,
3.W.1.
4- December, 1967.
то
Anglo-Benelux Agraed Minute on Trada
Thank you for the sopy of your letter CRE.41/67 of 24 November addressed to Gerdon and enclosing the Brief for the meeting with Benelux representatives on 12/13 December.
2. I have discussed the question of Commonwealth Office representation at the meeting with Morrice of the Common Aarket Department. We agreed that it would be appropriate for both our Departments to be represented my swn on behalf of Hang Kong and his on behalf of the remaining United Kingdom Overseas Territories. If this is generally acceptable we propose that Mr. G.I. Brown should represent this Department at the meeting.
3. I also discussod with Morrise our views on the brief for the meeting, and although our comments below relate only to Hong Kong's point of view I understand that his Department oonours with them.
4.. From the point of view of Hong Kong we raise no objection to the inclusion of the United Kingdom Overseas Territories within the scope of the Benelux Agreed Minute on Trade. The shaice as we see it, however, lies between including all United Kingdom Üverseas Territories or, if there is objection to the inclusion of tieng Kong, excluding them all. We emphasise that there must be no explicit exclusion of liong Kong from the application of the Agreed Minute to the United Kingdom Overseas Territories fopelitical reasons. China is very sensitive to any indications that we might be formally conceding an independent status to Hong Kong. If Hong Kong is treated differently from other United Kingdom Overseas Territories in this case, it would undoubtedly come sooner or later te the notice of China, with possibly serious consequences. It follows that amendment és paragraph 6 of the brief en paragraph 1 (of the Agreed Minute) will be necessary. I miggest that beginning with the second sentence "If the Benelux countries
the whole paragraph should be deleted and the following sentence inserted: "If the Benelux countries react strongly against the inclusion of the United Kingdom Overseas Territories because of Hong Kong's position, we need not insist on this point and could agree to the removal of the proposed reference to the Overseas Territories.
5. In paragraph 4 of the brief on paragraph 1 (of the Agreed Minute) it is stated that "the Hong Kong Government conducts an independent economic policy and negotiates its own trade arrangements". We would prefer the words "the Hong Kang Government exercises a wide measure of delegated control aver economic policy and in practice negotiates its own trade arrangements". This makes it clearer that Hong Kong has no "de Jure" commercial independence.
P.X.3. Corley Esq. Commercial Relations
Export Department, Beard of Trade, S.W.1.
CONFIDENTIAL
16.
R!
66
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