TNAG-0046-FCO40-82-Britain-s-entry-into-EEC-effect-on-trade-with-Hong-Kong-1967 — Page 150

EC5/240/1

CONFIDENTIAL

རྐུ་

8 August 1967

4/46

You will remember that, at the conclusion of the consultations on E.E.C. questions with Hong Kong officials which took place from 10 to 12 July, we agreed that, in preparation Dr a second round of consultations, we would give consideration to the question of the effects of U.K. entry into the E.E.C. on Hong Kong's rights under the G.A.T.T. The purpose of this letter is to set in train inter-Departmental study of this matter with a view to roaching conclusions we can put to Hong Kong officials when next we neet; although no date has been set for the second round of consultations, they are likely to take place in September.

2.

It may be convenient to summarise, for the benefit of those concerned who were not present, the U.K. record of the July consultations insofar as it relates to the G.A.T.T. The main points made were:-

(a) The Hong Kong officials asked whether our entry into

E.E.C. would in itself affect Hong Kong's G.A.T.T. rights in relation to the Six. They were told that it would not.

(b) They then asked what procedure could be adopted, after

British entry, for protecting Hong Kong's position in cases where it appeared that her G.A.T.T. rights were being disregarded by the enlarged Community or any of its Member States. It was recognised by both Delegations that it would be difficult for Britain, as a Member of the enlarged Community, to speak up in the .A.T.T. against a fellow Member. Britain could however raise the question at issue with the Member State concerned outside the G.A.T.T., either in a Community context of bilaterally.

(c) We pointed out that, if Hong Kong felt that this would

leave her position more exposed than at present, ahe had the possibility of taking unilateral retallatory action against any Member of the Community who discriminated against her, either by tariff means or through the exercise of her public purchasing policy.

(a) We also pointed out that, whereas it now fell to us to

speak for Hong Kong within the G.A.T.T., this situation derived from the fact that the G.A.T.T. had been applied to Hong Kong by virtue of a declaration on the part of the United Kingdom as the Metropolitan Power in accordance with Article XXVI; the legal basis of her rights could however be changed by either:-

T. Nuir, Esq.,

Board of Trade,

London, S.#.1.

CONFIDENTIAL

(1)

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