TNAG-0047-FCO40-83-Britain-s-entry-into-EEC-effect-on-trade-with-Hong-Kong-1967 — Page 18

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at

A further British proposal that, if these reviews showed that

damage was being caused to Hong Kong trade as a consequence

of British entry, remedial action should be taken was,

the time of the breakdown, subject to a counter-proposal by

the Six that remedial action should also be taken if any

Hong Kong exports were shown to be causing market disruption

in the Community.

The Foreign Secretary's Statement in the Council of W.E.U.

on 4 July

6. When this was drafted officials had not had the opportunity

of consultations with Hong Kong officials, nor had any detailed

thought been given to a negotiating position on Hong Kong.

In these circumstances, it was decided that paragraph 36 of

the Statement, which dealt with the dependent territories,

should be drafted in such a way as to leave our position on

Hong Kong quite open. This paragraph reads as follows:-

We

"During the 1961-63 negotiations between the Community

and Britain it was provisionally agreed that, with one or

two exceptions, association under Part IV of the Treaty of

Rome would be appropriate for our dependent territories.

trust that you would still agree that for these territories

this is the best arrangement. We should discuss together

the position of any dependent territories for which associa-

tion is not appropriate."

-

or none

The last sentence of the paragraph leaves the way open for

us to seek any special arrangements we wish

for

Hong Kong in the negotiations.

The European Commission's Report

7. This contains several clues on the Commission's likely

attitude to Hong Kong. (The Governments of the Six will

not necessarily agree with what the Commission say. But the # Commission's repo-

is bound to have significant influence on them)■*

8. The Report contains only one sentence referring directly

to Hong Kong. In the section on 'The Wider Community and

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/Third Countries'