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CONF JULAI LÀL
2. If Mr. Hijzen shows any disposition to
offer some limited special treatment for
Hong Kong, we could express interest and
undertake to examine urgently any suggestions
which the Commission had to make.
Background
3. The latest development on the American
front is that UKDEL Brussels have reported a
conversation with Mr. Bergsten of the White
House who said that the latter are now
conducting a statistical exercise to ascertain
what percentage of her trade Hong Kong would
lose if excluded by the U.S. and the EEC. lle
also intimated that if the likely trade loss
proved to be sufficiently damaging, the
political need to sustain Hong Kong might
lead to a favourable decision.
Washington
and Hong Kong are now examining this question.
We have also heard that the EEC intend to
confine their offer to the Group of 77 and
that some special arrangement might be worked
out for Hong Kong at a later stage. This
would create problems for us since there is
a risk that other donors would regard the
CEC as having excluded Hong Kong and would
themselves follow suit.
4..
Following the submission of an Aide
Memoire to the Japane se on 18 August, the
Secretary of State sent a message to the
Japanese Foreign Minister urging him to
intervene. When the Aide Memoire was handed
over we were informed that a firm decision
to exclude Hong Kong had been taken some time
ago and that it would be most difficult to
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