CONFIDENTIAL
Malta and Cyprus
39. As independent European countries, Halta and Cyprus are eligible for full membership of the Communities under Article 237 of the Rome Treaty, or for association under
NO Article 238. In 1962 Cyprus applied for association.
progress had been made on her application by the time that
negotiations were broken off.
40.
The
Malta has now entered negotiations with the Community
for the conclusion of a customs union in two stages.
EEC Commission have recommended that Malta be treated
outside the framework of the enlargement negotiations.
Cyprus have been considering asking the Community for a
preferential trade agreement on citrus fruits, with a view
to applying again for associate membership if Britain was
becoming a full member of the enlarged Communities.
However recent trouble within the GATT over such agreements
may make Cyprus reconsider in terms of moving straight
to seeking an arrangement like the Maltese one.
Gibraltar
41. Since Gibraltar is a European territory for whose
external relations we are responsible, on British entry
to the EEC Gibraltar would become part of the Communities
under Article 227(4) of the Rome Treaty unless other
arrangements are negotiated. (Gibraltar Ministers are
looking at this whole question again, but we expect that
membership under Article 227(4) is what they will favour).
If Gibraltar is to maintain her free port arrangements we
shall probably have to negotiate for her specific inclusion
VILNONOO
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