TNAG-0045-FCO40-81-Britain-s-entry-into-EEC-effect-on-trade-with-Hong-Kong-1967 — Page 114

Cypher

SECRET

INWARD TELEGRAM

TO THE COMMONWEALTH OFFICE (The Secretary of State)

FROM HONG KONG (Sir D. Trench)

Do 13th May, 1967. Ro 13th

12

13452

SECRET No. 601.

Addressed to Commonwealth Office. Repeated

"Brussels (for Martin)No. M. 316. "Geneva (for Jones) No. M. 317.

(Please pass to both).

LAST

REF.

10

R X

16

11

Your telegram No. 874

Consultations with the Commonwealth on E.E.C.

However unrealistic the reiteration of a request for a form of associate status may be in the event of Britain's entry, it would certainly have some presentational merit here as an indication of the United Kingdom's responsibilities towards Hong Kong which are presumably recognised in the phrase "highly important Commonwealth interests". Furthermore, the arguments which led to the rejection of the previous request for formal associate status were not then, and are not now, accepted here as fully valid. If full and formal association is even more of a non-starter now than it was in 1962 we should wish at least that the possibility of some modified form of association should be explored which would recognise Britain's continuing obligations to the Colony as a dependent territory. The fact that there are fewer dependent territories than in 1962 should reduce the scale of the problem in so far as the E.E.C. is concerned.

2. The arrangements outlined in your paragraph 5 simply amount to decalage and a consultation clause should Hong Kong's trade be damaged. In the absence of any indication of the length of the transitional periods envisaged and other details it is difficult to say whether or not such arrangements would be acceptable. They would certainly be much less acceptable than permanent arrangements based on some form of associate status. Transitional arrangements will merely sugar the pill and ameliorate for a time the damage to the economy. It would represent our absolute minimum expectations and some form of continued preferential treatment for certain items would be necessary. In the absence of natural resources and any significant internal market, low or duty-free access to the much larger market of the metropolitan country is, as you are aware, of considerable importance to us in order to develop the new industries which are essential to the Colony's economic growth.

SECRET

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