TNAG-0046-FCO40-82-Britain-s-entry-into-EEC-effect-on-trade-with-Hong-Kong-1967 — Page 29

CONFIDENTIAL

40.

On (a), Hong Kong officials made clear that their

principal concern was about New Zealand, where their pre-

ferences are of particular value. They were told that we

could see no inherent reason why the gradual abolition of

preferential trading arrangements between the U.K. and the

rest of the Commonwealth should lead to any change in trading

arrangements as between other Commonwealth countries and

territories. However, as we should be trying to obtain some

very substantial benefits for New Zealand in the context of

our negotiations with the Six, we could certainly express the

hope to New Zealand that she in turn would not terminate the

benefits she now gives to Hong Kong. On (b), so long as Hong

Kong enjoys any margin of tariff preference on her cotton

textile experts to the U.K., she is likely to continue buying

Pakistan cotton and Canadian plastics.

external tariff is applied in full to Hong Kong exports to this

country, it seems inevitable that Pakistan and Canada should

suffer to some extent.

But, once the common

There seems nothing that we could do

about this.

CONFIDENTIAL