TNAG-0046-FCO40-82-Britain-s-entry-into-EEC-effect-on-trade-with-Hong-Kong-1967 — Page 5

CONFIDENTIAL

64.

:

Mr. Audland

E.X.C. CONSULTATIONS WITH HONG KONG FFICIALS

Thank you for letting me see your draft brief for consultations. In general I thinɛ it is excellent and it certainly covers all the points which see likely to arise.

I have only one slight reservation.

Paragraphs 36 and

37 on the possibility of a "Declaration of Intent" on behalf

of thé Hong Kong could, it seems to me, do with a little

exŊansion.

First, in paragraph 36 the alternative of a statement in Parliament is mentioned. This is certainly a possibility, but is it reasonable to assume that we could get amy with such a statement without warming the Community beforehand?

If vo đid not do so, such a statement would surely give rise to the

kind or suspicions mentioned elsewhere in the draft. It there-

fore seems to me that there is little to choose between a

nent in Farliament and a unilateral declaration by A.M.G.

the time of accession. Both would need some kind of explanation

so as to asaurs the Six that we were not trying to pull a fast

one on

Secondly, it seems to me that the formulation in pare- graph 37(a) is alightly one-sided. Have we any evidence that the Six would not be amenable to the type of argument which stressed that Hong Kong was heavily depenient on now investment

for its existence, and that anything which destroyed confidence

could dry up the flow of such investment? If we joined the

Community without any safeguards for Hong Kong, potential

investors could well asmine that we were no longer concerned to

protect Hong Kong's interests, and would draw their own concâu- sions. Such a declamation could therefore be presented as a

very necessary public relations exercise if Hong Kong is to

remsin visble. Of course I do not know whether such an argument

would carry any weight, but I do not think that we should assume

from the outset that it would be thrown out.

Copied to:

Sir Arthur Smalling

Mr. Gallagher

Mr. Carter

Kr. Healey

CONFIDENTIAL

(F. Selwyn)

18th October, 1967. RECEIVED IN

ARCHI

26 OCT1957

HWB 6/18