TNAG-0046-FCO40-82-Britain-s-entry-into-EEC-effect-on-trade-with-Hong-Kong-1967 — Page 61

CONFIDENTIAL

5. It appeared that the effect of U.K. entry into the

Community on Hong Kong's rights under the G.A.T.T.

should

be studied further. At present Hong Kong has no G.A.T.T.

relationship with Britain but does have such relationships

with the Six. The preliminary Pritish view was that

theso relationships would be unaffected; but a definitive

opinion would be given later and would cover the following

questions

6.

(1) Would Britain's access as such affect Hong

Kong's G.A.T.T. relationships with the Six?

f

(ii) What procedure could be adopted, after British

entry into the E.E.C., for protecting Hong Kong's

position in cases where it appeared that her

G.A.T.T. rights were being disregarded by the

Community or any of its Member States?

The Hong Kong Delegation proposed that an objective

of the U.K. in the negotiations should be to ensure that

Hong Kong's present rights of access for cotton textiles

to the countries of the enlarged Community would not be

diminished. The application of the common external

tariff to their exports of cotton textiles to the U.K. was

a secondary matter, although this might have some effect

on the pattern of trade.

7. It was noted that 0.E.C.D. and U.N.C.T.A.D. were both

working on proposals for the establishment of a system of

generalised preferences for less developed countries, which

could provide Hong Kong with benefits for new products which

woull offset her loss of preferential Commonwealth access

to the J.K. market (see paragraphs 2(g) and 3 above).

8. A second round of talks might be held in about two

months time on the same basis to give further consideration

to the foregoing points.

CONFIDENTIAL