TNAG-0045-FCO40-81-Britain-s-entry-into-EEC-effect-on-trade-with-Hong-Kong-1967 — Page 12

CONFIDENTIAL

sets out the points which the British Government hope to

see covered in negotiations;

suggests the directions in

which a solution might be found; and calls for the speedy

opening of negotiations, and an equally frank and full

statement of the Six's position at the outset.

Paragraph 36 of the speech reads as follows:

"During the 1961-63 negotiations between the Community

and Britain it was provisionally agreed that, with one or

two exceptions, association under Part IV of the Treaty of

Rome would be appropriate for our dependent territories.

We trust that you would still agree that for these territories

this is the best arrangement. We should discuss together

the position of any dependent territories for which associa-

tion is not appropriate.

The last sentence of this paragraph leaves the way open for

us to seek special arrangements for Hong Kong in the

negotiations.

Recommended Line

12.

We should ask Hong Kong officials in what way they think

their interests might be safeguarded and then comment on the

following lines. There are a number of rossible approaches

to the problem. One possibility would be for us to revive

the kind of request we were making at the close of the

previous negotiations - i.e. agreed transitional arrangerents

for cotton textiles and other goods, plus provision for

periodical consultations between the enlarged Community and the

Government of Hong Kong to review the development of

trade between the Community and the territory. A new overall

pattern of transitional arrangements will need to be worked out

in these negotiations since Britain would be entering a

Community which will have reached a common external tariff

rather than one which is still movir, towards

ne. Arrange-

ments for Hong Kong would have to fit into this pattern.

So

/far

CONFIDENTIAL