TNAG-0248-FCO40-284-Effect-of-entry-of-UK-into-EEC-on-exports-from-Hong-Kong-1970 — Page 80

CONFIDENTIAL

within the scope of the Communities' directive on this

subject; and bring her arrangements into conformity with the provisions of this directive, details of which are

attached at Annex V

42. It should be noted that, if Gibraltar becomes part

of the Communities under Article 227(4), and if Spain

successfully concludes the preferential trade agreement

which it has now negotiated with the Community, Spain will

be bound by the provisions of that agreement in so far as

trade between Gibraltar and Spain is concerned. The

present members of the Communities may be reluctant to

become embroiled in this particular political problem,

but it would be in our interests to achieve for Gibraltar

the inclusion in the Communities which would be her legal

right.

Hong Kong

430 It is likely to prove very difficult to persuade the

EEC to agree to any measures designed to mitigate adverse

effects on Hong Kong's trade of British accession. The

Commission, while recognising the need to work out some

solution for "the particular structure" of the Colony,

has warned against compromising the unity of the enlarged

Community's market by the inclusion of Hong Kong. As noted

above, perhaps the most promising prospect for dealing with

the problems of the exports of industrial goods of the

Commonwealth developing countries in Asia lies in the

implementation of generalised preference arrangements.

same would be even more true of Hong Kong if it were certain

The

TVILNBAHNOO

/that she