TNAG-0046-FCO40-82-Britain-s-entry-into-EEC-effect-on-trade-with-Hong-Kong-1967 — Page 158

CONFIDENTIAL

Lesert X1 7 12/12

We

6. As regards the use of Hong Kong's public

purchasing policy as a bargaining counter, we

have done a little preliminary research.

find that the Hong Kong Government's recurrent

and capital expenditure in 1966/67, after

deducting personal emoluments and pensions, is

estimated at nearly £79,000,000. The present

practice of the Hong Kong Goverment is to buy

in the cheapest market, and to refrain from

using Government purchasing power to obtain

export outlets. We do not see why, if Britain

joins the E.E.C. and Hong Kong thereby suffers

But it

and cannot get redress from the enlarged

Community, Hong Kong should not use such

weapons as are then available to her.

would be awkward for the British Government

if Hong Kong begar. to discriminate between

members of the enlarged Community only after

Britain had joined. Britain might be requested

to call the unruly Colonial Government to heel,

which presumably could be done if the Colony

did not enjoy tariff autonomy (see the following

paragraph). It would therefore be better that

Hong Kong should initiate, before Britain joins

the Community, any policies which it may want to

pursue after Britain joins. It seems reasonable,

irrespective of Britain joining the Community,

/that