TNAG-0045-FCO40-81-Britain-s-entry-into-EEC-effect-on-trade-with-Hong-Kong-1967 — Page 167

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before long have to take part in formulating this policy,

And since we are now in most respects more liberal than the Six, we should be under pressure to be more restrictive).

3. The effect on Hong Kong of having to sell to Britain over

the common external tariff would be marked, particularly as

Hong Kong is so dependent on exports of manufactured goods and

so many of these come to Britain, On the other hand, Hong

Kong has already achieved a remarkable level of sales over

tariff barriers elsewhere in the world, due to her dynamic,

low cost industry. The possible effects of the establishment of

a common commercial policy in the enlarged Community could

therefore be potentially more serious.

4. Hong Kong in the 1961-63 Negotiations:

The Six refused

to consider offering to Hong Kong the status of an Associated

Overseas Territory, which would have entitled her to duty free

entry into the Community for all her exports of manufactured

goods and made her eligible to receive aid from the European

Development Fund, Agreement was reached that Britain and the

Six would work out, before Britain's entry into the

Community, appropriate measures in the field of trade relations'

5, The Attitude of the Six: It is significant that, in

the 1961-63 negotiations, the Six, prompted by the French,

would not agree to including in the text of Hong Kong references

to British responsibility for the Serritory 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 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.

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16.