TNAG-0046-FCO40-82-Britain-s-entry-into-EEC-effect-on-trade-with-Hong-Kong-1967 — Page 171

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5.

(iv)

to propose a bilateral trade agreement between

Hong Kong and the enlarged Community.

to work out-

(v) a unilateral declaration by H.M.G., to be made at

the time of the signature of the accession documents, placing on record Britain's continuing responsibilities

for her Dependent Territories.

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

preferential arrangements with her Commonwealth trading

partners other than Britain.

The record and agreed note also bring out the following points about the thinking of Hong Kong officials.

(a) they have a very realistic approach, and are in particular

well aware of the difficulties we are likely to encounter

with the Six.

(b) they recognise that rights of access are of greater

15 an

importance to Hong Kong and tariff levels.

In this

connection, they set great store by the preservation and continued exercise of their G.A.T.T. rights.

(c) they are keenly aware of the danger that any request to

the Six for special arrangements for Hong Kong is likely

to stimulate the latter to seek protection from Hong Kong

competition, e.g. by a demand for a market disruption dause or severe origin criteria. For this reason they displayed a clear preference for i) above, perhaps

coupled with (iv); but they stressed that their views

on this were preliminary.

(a) They recognise that Association and a Morrogo-type Protocol

are both unnegotiable. the consult-atings

(e) they themselves drew attention to Hong Kong's declining

(f)

dependence on the British market (whose share of Hong Kong exports fell from just over 20% in 1960 to about 17% in 1966); and to her growing dependence on the markets of the Six (whose share grow from 5% to 10% over the same period).

e

they see no problems for Hong Kong as regards sterling or immigration.

THE EFFECT OF U.K. ENTRY INTO THE E.E.C.

ON HONG KONG'S RIGHTS UNDER THE G.A.T.T.

6. Correspondence on this question is being initiated separately with the Board of Trade and the Foreign Office, and this section

of the brief will be drafted in the light of the views which emerge. Departments have been asked to let us have their comments by 15 August.7

TEXTILES

7.

Textiles are Hong Kong's biggest problem. Her exports of

/textiles

**

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