TNAG-0045-FCO40-81-Britain-s-entry-into-EEC-effect-on-trade-with-Hong-Kong-1967 — Page 148

CONFIDENTIAL

4.

"In the light of this review the Government have decided

that a new high level approach must now be made to see

whether conditions exist or do not exist for

fruitful negotiations, and the basis on which such

negotiations could take place",

The Prime Minister then referred to the E.F.T.A. Heads

of Governments Conference (which took place on 5 December) and

added:

"Following that conference my right honourable Friend

the Foreign Secretary and I intend to engage in a series

of discussions with each of the Heads of Government of

the Six, for the purpose of establishing whether it

appears likely that essential British and Commonwealth

interests could be safeguarded if Britain were to accept

the Treaty of Rome and join the E.E.C."

5. The Prime Minister and Foreign Secretary have visited

Rome, Paris and Brussels. They will be going to Bonn (14-16

February), The Hague (26-27 February) and Luxembourg (8 March).

6. The following are some of the main points which the Prime

Minister and the Foreign Secretary are making:-

(1) Treaty of Rome The Prime Minister has said that

the Treaty of Rome is not in itself or necessarily

an impediment; it need not be an obstacle if our

problems can be dealt with satisfactorily, whether

through adaptations of the arrangements made under

the Treaty or in any other acceptable manner.

Capital Movements

(2)

The capital account is a vital

element in our balance of payments. We recognise

that the gap between our stringent controls on

capital movements and the liberal regime of the

Community will have to be closed. We shall need a

CONFIDENTIAL

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