CONFIDENTIAL
A Bilateral Arrangement between Hong Kong and the Community
19. Mr. Haddon-Cave felt that the dangers of this outweighed
its attractions. The possibility might arise of Hong Kong
having to introduce a tariff of its own, and this could cause
serious problems particularly in relation to Communist China.
No Special Arrangement
as
20. Mr. Haddon-Cave said that this course, which he described
"adopting a passive attitude", amounted to asking for nothing,
taking what came and relying on the Territory's G.A.T.T. rights (if it had any). Hong Kong feared that the Six would make her
pay heavily for any special treatment which she obtained. For
example, the Community might press for more stringent origin
criteria or insist on writing into any special arrangement for
Hong Kong a restrictive market disruption clause. On the other
hand, if the Hong Kong Government concluded that the loss of
Commonwealth preference would be s、ricus, and that a transitional
period for the application of the c.e.t. would not be a sufficient
safeguard, then the Territory might not be able to adopt a
passive attitude. Sir A. Galworthy wondered whether the Six might
not be suspicious of British intentions over Hong Kong if a
passive attitude were adopted.
CONFIDENTIAL
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