TNAG-0139-FCO40-175-Effect-of-EEC-common-commercial-policy-on-Hong-Kong-exports-1969 — Page 3

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CONFIDENTIAL

Reference.....

Mr

r. R. G. Britten

ten

(T.P.D.)

16

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20

Hong Kong and E.E.C. Common

Commercial Policy

I agree generally with your conclusions, with those of Mr. Carter's minute of 1 October.

2.

and

I would see advantage in action of the kind suggested in paragraph 5 of Mr. Carter's minute, for two reasons :-

(i)

(ii)

3.

It will certainly be extremely difficult to secure any substantial changes after the Council of Ministers takes its decisions on the Commission proposals. And I agree with Mr. Christofas (paragraph 3 of his letter of 10 September) that any concessions by the Community to Japan might well be at the expense of Hong Kong.

if the Community adopts proposals unfavourable to Hong Kong, HMG will be under pressure to put matters right for Hong Kong in the course of negoiations for our entry to the E.E.C. It would be preferable, both for Hong Kong and for ourselves, to make our representations to the Community before unfavourable proposals are adopted and before negoiations for entry.

From this Department's point of view, there- fore, there is no objection in principle to represent- ations by HMG of the kind proposed on behalf of Hong Kong. Thereafter there would seem to be advantage in encouraging the Hong Kong authorities to embark on bilateral discussions with the Commission if this is indeed their wish (paragraph 5 (ii) of Mr. Carter's minute). Our representations should, I think, be made to the Commission alone, not to the Community member states (paragraph 4 of your minute). This is a question of the Community's Common Commercial Policy. A more scattered approach would complicate matters unnecessarily, without making a concerted favourable reaction more likely.

4.

As regards the timing of an approach by HMG (paragraph 5 (iii) of Mr. Carter's minute), would be advantage in acting before the end of the year, when the Community should, according to the Treaty of Rome, have established its Common Commercial Policy. There is no realistic prospect of substantial negotiations on the British applications for entry before that date.

cc. Mr. Carter,

Hong Kong Dept.

mounta

J.A. Robinson

European Integration Dept. 17 October 1969.

CONFIDENTIAL

by Carter. Ihave nothing futter toadd at the

present stage

148 riten "71,