TNAG-0250-FCO40-286-Discussions-on-EEC-negotiations-between-officials-of-Hong-Ko-1970 — Page 137

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should receive priority in the UK labour market equal to that given in existing EC countries to the nationals of their former or prescnt comparable territories outside Europe. The position of immigrants from the dependent territories under the proposed new immigration bill is still not clear. The Foreign and Commonwealth Office, however, have suggested that the conditions under which these immigrants are admitted

at present should remain unchanged.

Retaliation

29. In 1967, Hong Kong officials emphasised the point that, in their view, it would be quite wrong for Britain to regard possible retaliation by Hong Kong as an alternative to British action to protect the Colony. However they did not rule out the possibility of Hong Kong retaliating. This might, in fact, take the form of insuring that public tenders are diverted away from British industry and that some attempt is made to run down Hong Kong's sterling balances. At the same time it must be recognised that Hong Kong's freedom to retaliate is restricted by her political, her commercial, and her constitutional position.

Commonwealth Preferences and Compensation

30. The position of Hong Kong preferences under the Ottawa Agreement and possible compensation for loss of these in the British Market after entry to the EEC, were thrashed out in

detail in the 1967 discussions. It is suggested that if necessary they should best be covered in separate discussion when we are clearer about the outcome of the negotiations. They are not directly related to actions we may pursue in our negotiations.

Publicity

31.

After the 1967 talks an agreed statement was released to the Press in the UK, and the Leader of the Hong Kong Delegation made an agreed statement to the Press on his return to Hong Kong. This said, inter alia, that "the probable consequences of the loss of preferential access to the British markets for

Hong Kong's exports look less serious now than they did

five years ago.

But the situation will have to be closely watched as it develops." It will be necessary, during this

round of talks, to agree to similar statements.

This can

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