TNAG-0047-FCO40-83-Britain-s-entry-into-EEC-effect-on-trade-with-Hong-Kong-1967 — Page 35

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not Community, policy, Britain would probably have a much freer

hand in invoking the G.A.T.T. on Hong Kong's behalf.

3. Mr. Cowperthwaite said that he accepted that the fact that

Britain would have the opportunity to influence Community

policy from the inside would be some compensation to Hong Kong

for any detriment arising from the loss of an effective voice in

in the G.A.T.T. on that policy. But he could not accept that

there would be no significant detriment from this. He felt

that Hong Kong's position would be weakened in the sort of

bilateral discussions referred to by Mr. Muir, both by the fact

that the sanction of G.A.T.T. procedures would no longer be

available against other members of the Community and by the fact

that Hong Kong's protector, Britain, might be seen to be

compelled, as a member of the Community, to act against Hong

Kong. Mr. Haddon-Cave added that while it would still be

possible for Britain to raise on Hong Kong's behalf in the

G.A.T.T. the national policies of another member of the Community,

she might well feel inhibited from doing so for political

reasons.

4°

As regards the G.A.T.T. provisions for retaliation where

G.A.T.T. rights were infringed, Mr. Muir confirmed that the

only permitted sanction against the infringement of Hong Kong's

rights was retaliation by Hong Kong. There could be no question

of retaliation by Britain on Hong Kong's behalf. This had

always been the case and so it was at least arguable that

whatever Britain had been able to achieve on Hong Kong's behalf

had been due as much to other factors as to the knowledge of

Hong Kong's ultimate G.A.T.T. rights, e.g. her persuasiveness

behind the scenes: presumably such factors would still hold if

we joined the Community. Mr. Cowperthwaite confirmed that it

was his understanding, too, that Britain could not retaliate in

G.A.T.TT. on Hong Kong's behalf.

5. Mr. Muir said that legally it would be a straightforward

matter to give Hong Kong her own voice in the G.A.T.T. by

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/granting