TNAG-0045-FCO40-81-Britain-s-entry-into-EEC-effect-on-trade-with-Hong-Kong-1967 — Page 27

CONFIDENTIAL

Ghugh this might not be live case if Hạng trong

included in larrangements.

general

At present, H.K.

has

MO

GATIT.

relationship wit Britain but dars

have such

the Six

relation Stups.

with

suggestion might well be covered, as regarde new

products, by the proposed arrangement for a system

of generalised preferences for less developed-

countries now under discussion

(paragraph 7 below).

O

C.D.

4. It was generally thought that any request

for special treatment for Hong Kong by the

enlarged Community was likely to encourage the

Six to seek protection from Hong Kong competition

in various ways, e.g. by the adoption of a

stringent market disruption clause and/or severe

origin criteria.

5. It appeared that the effect of U.K. entry

into the Community of Hong Kong's rights under the

G.A.T.T. should be studied further. The preliminary

Aelationships A

British view was that these rights would be

unaffected; but a definitive opinion would be

given later and would cover the following

questions.

(i) Would Britain's access as such affect

Telationships

Hong Kong's G.A.T.T. rights vis-a-vis the Six? (ii) What procedure hould be adopted, after

British entry into the E.E.C., for

protecting Hong Kong's position in cases

where it appeared that her G.A.T.T. rights

were being disregarded by the Community or

any of its Member States?

In this connexion it was suggested that consideration

might also be given to the possibility of the

/British