TNAG-0045-FCO40-81-Britain-s-entry-into-EEC-effect-on-trade-with-Hong-Kong-1967 — Page 10

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exports were shown to be causing market disruption in the

Community.

The Attitude of the Six

8.

Hong Kong was not mentioned during the tour by the

Prime Minister and Foreign Secretary of the capitals of the Six,

and we have only indirect indications of what the attitude of

the Six will be. It is significant that, in the 1961/63

negotiations, the Six, prompted by the French, would not agree

to including in a Conference text references to British

responsibility for the territory and the need to have regard

for the living standards of its inhabitants, unless mention

was also made of the need to protect industry in the Community

from damage resulting from imports of all kinds from Hong Kong.

Also, in more recent discussions on possible ways of helping

developing countries to expand their exports, the French, in

particular, have made it clear that they would not regard

Hong Kong as a developing country for the purpose of any

concessions which might be granted.

The Attitude of Hong Kong

9. Hong Kong's trading relationships with the Community, both

in the context of possible British membership and other ways,

have been the subject of public discussion for some time, and

the present British application has served only to make this

more urgent. At one time last year, Hong Kong showed interest

in concluding a trade agreement with the Community, independently

of British membership, but this was not pursued.

10.

The anxiety of the Hong Kong Government about the

implications of British membership of the Community has been

concentrated in three areas: first, the effect on Hong Kong's

competitive position in the British market of loss of

preference and to the establishment of reverse preferences in

favour of the Community;

second, the danger that after entry

Britain might be required, or might her self decide, to adopt

/a more

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