TNAG-0047-FCO40-83-Britain-s-entry-into-EEC-effect-on-trade-with-Hong-Kong-1967 — Page 14

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Reference.

667

MR. CARTER

MR. SELWYN

(separate copies)

U.K./E.E.C.

Draft negotiating brief on Hong Kong

I attach a copy of a draft negotiating brief prepared by Mr. Healey, on which I should welcome your comments. The chances of it being used in the foreseeable future may seem slight; but, as it is our general policy to maintain our application for membership of the Community pending a reply from the Community as a whole, this Department must proceed on the process of business as usual.

2.

The draft speaks for itself. It should be read against the background of our two rounds of consultations with Hong Kong officials (and particularly the record of the last meeting in the afternoon of 25 October). I may remark in parenthesis, that it is just as well these consul- tations ended before devaluation; otherwise I think the Hong Kong delegation would have been much harder to deal with. There is only one point in the draft on which I should like to comment specifically. It omits any reference to the Hong Kong suggestion that, at the outset of the transitional period Britain should move to a different system of origin for Commonwealth preferences, based on the criterion of a "change of state" brought about by a manufacturing process. The Hong Kong delegation never made out a very convincing case for this; although we undertook to give the matter further consideration (paragraph 6 of the record of the afternoon session on 25 October), we stressed that we saw grave difficulties about it. We added that it would help if the Hong Kong Government could provide a fuller statement of their arguments. They have not yet done so. Unless Hong Kong Department dissent, I think we should now take the view that we have given the matter further consideration; and that we still do not believe the suggestion should be adopted. Any other decision would complicate negotiations with the Six without, in my opinion, greatly helping Hong Kong.

CJ. And and

(C. J. AUDLAND)

30 November, 1967.

Copy with attachment:

Copy without

attachment:

Dr. Brown

Mr. Gallagher Secretariat

Mr. Healey

Views

be

S

I would be

on this.

Grateful for your

We might discuss it,

7/12/67