TNAG-0046-FCO40-82-Britain-s-entry-into-EEC-effect-on-trade-with-Hong-Kong-1967 — Page 10

CONFIDENTIAL

The Composition of the Hong Kong Delegation:

The Hong Kong delegation to the first round of talks was led

by Mr. C.P. Haddon-Cave, then Deputy Director of Commerce and

Industry, who presented the Hong Kong case with great objectivity

and a quite open acknowledgment of the limitation of our negotiating

position regarding Hong Kong. For the second round, the Hong Kong

delegation will be led by the Financial Secretary, Mr.J.J.Cowperthwaite,

who is known to have strong views on a number of topics, notably

the use of public purchasing policy as a weapon in commercial

diplomacy.

Moreover, the delegation will be accompanied in London

(but not in the actual consultations) by three unofficial members of the

Legislative Council. This may mean that the Hong Kong delegation

will take a more cautious line than they did before.

POINTS ARISING FROM THE PREVIOUS ROUND OF CONSULTATIONS.

9. The U.K. record of the previous round, which was not shown to

Hong Kong officials, has already been circulated. At the conclusion

of those consultations, a short agreed note was also approved by

both Delegations, and a copy is at Annex A.

10.

The Hong Kong Delegation are likely, during the next round to

wish to discuss the following points.

(a) The effect of U.K. entry into the E.E.C. on Hong Kong's

rights under the G.A.T.T.

(b) Textiles

(c) Hong Kong's other exports

(a) Theoretical possibilities for dealing with Hong Kong's

problems in the context of the U.K. negotiations with

the Six, notably:

(i) to seek no special arrangements

for Hong Kong's trade, and to

accept that the common external

tariff will be applied to her

exports to Britain by whatever

steps may be agreed between

Britain and NADENTIAL