TNAG-0046-FCO40-82-Britain-s-entry-into-EEC-effect-on-trade-with-Hong-Kong-1967 — Page 196

CONFIDENTIAL

A Declaration by the British Government of its continuing responsibility for the Dependent Territories

17. Mr. Haddon-Cave suggested that the unilateral Declaration

by the German Government on Berlin, which was appended to the

Treaty of Rome, might provide a precedent for a Declaration by

Britain concerning her responsibilities for her Dependent Territories

generally. Although this would not have any legal effect on

Hong Kong's position, such a Declaration would have considerable

presentational advantages in Hong Kong. On the other hand, it

was pointed out that since it would make no practical difference,

a Declaration of this kind might merely provoke the Six.

18. Mr

A limited preferential arrangement for Hong Kong

Haddon-Cave explained that what lay behind this

suggestion was the importance of Britain to Hong Kong as

an extension of her own home market. Preferential access to the

British market had been particularly important in starting new

industries in the Territory, and remained important for that reason.

British membership of the Community would mean that Hong Kong

would lose this protected market and she would be competing

with everyone else on an equal footing, apart from the Six who

would receive preferences over her. Sir A. Snelling felt that

this idea merited examination, especially if confined to new

products; but he was not sure whether it would be wise to put

it to the Six. Mr. McQueen explained that for certain products

tariff quotas could be given to Member States under Article 25

of the Rome Treaty; but the purpose of this Article was to

enable Member States to satisfy their domestic market in those

items in which the Community was not self-sufficient, and quotas

granted under this Article were not confined to single sources

of supply.

CONFIDENTIAL

/A Bilateral