TNAG-0046-FCO40-82-Britain-s-entry-into-EEC-effect-on-trade-with-Hong-Kong-1967 — Page 213

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he recognised that this would impair Hong Kong's free port status. Mr. Haddon-Cave replied that Hong Kong had no customs control; but thought had been given to the possibility of constructing a tariff, suspending it, and then invoking it against those countries which treated Hong Kong badly. Mr. Selwyn wondered whether there was any scope for Hong Kong to protect herself through public purchasing policy. Mr. Haddon-Cave said that the

French had won a large slice of the public works contracts which were awarded on open contract, and the Territory could not afford not to take the lowest tender. As regards Sir A. Snelling's suggestion of retaliation by tariff measures, he said that it would not solve the problem of the E.E.C. becoming a single Contracting Party to the G.A.T.T. Mr. Audland pointed out that

no-one in the Community has suggested such a step; if and when Britain became a member of the E.E.C., and such a suggestion were made, she would be in a position to raise the question of the effects on Hong Kong. The E.E.C. would by then be likely to regard the problems of Hong Kong as Community problems; they had never acted harshly towards any associate or dependency

so far.

17. Mr. Haddon-Cave said that G.A.T.T. m.f.n. rights of entry were of great importance to Hong Kong; hence the concern which he had expressed. Sir A. Snelling said that the mere fact of

British entry into the Community would not affect them. If the Six, on achieving economic union, abandoned separate national membership of G.A.T.T., and the Community became a single Contracting Party, the situation might be different. But that was a hypothetical question which was not likely to

arise until well after British accession. It was not there-

fore suitable for discussion in the negotiations.

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