TNAG-0248-FCO40-284-Effect-of-entry-of-UK-into-EEC-on-exports-from-Hong-Kong-1970 — Page 17

Mr. Tickell

I submit a draft reply from the Chancellor of the Duchy

of Lancaster to Mr. Hamm's letter of 10 July from the Hong Kong

The reply has been agreed by Hong Kong Department.

Association.

2. While the Communities recognise the special case of

Hong Kong, there is no reason to expect that they will countenance

Hong Kong association with the enlarged Communities, any more

than they did in 1962. Hong Kong is certainly a question

which we shall need to discuss in negotiations.

Ministers

have provisionally agreed that we should seek to prevent the

Community adopting the French restrictive policy towards Hong

Kong as the basis for a Common Commercial Policy. Meanwhile,

we shall continue to seek participation for Hong Kong in the

UNCTAD Generalised Preferences Scheme, although the prospects

even for this appear none too good. The Hong Kong Government

accept that they are unlikely to receive any special benefits

from our negotiations but will press, if they are excluded

from the UNCTAD Scheme, for the exclusion of their main

competitors

Taiwan and South Korea. It would be inappropriate

at this point to reveal these details.

3.

I recommend that Mr. Barber should meet Mr. Hamm, but that

the meeting should be deferred until the autumn.

H116/208/1

c.c. Hong Kong Department

L. Promen

(N. Statham)

European Integration Department

17 July, 1970