TNAG-0250-FCO40-286-Discussions-on-EEC-negotiations-between-officials-of-Hong-Ko-1970 — Page 263

IMMEDIATE GOVERNOR HONG KONG TO F.C.O. LONDON

TEL RAM NUMBER 738

23 OCTOBER 1970

CONFIDENTIAL 230432 Z

PRAME

ADDRESSED TO FOREIGN AND COMMONWEALTH OFFICE LONDON TELEGRAM NUMBER 738 OF 23 OCTOBER 1970 AND REPEATED FOR INFORMATION TO

UKDEL BRUSSELS, AMBASSADOR BRUSSELS (FOR DODGE) AND UKMIS GENEVA (FOR JONES).

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YOUR TELEGRAM NUMBER 696: HONG KONG/EEC,

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102 IN MY FLASH TELEGRAM 712 WE WERE UNABLE TO SET OUT FULLY

OUR VIEWS ABOUT THE RELATIONSHIP BETWEEN NEGOTIATIONS ON GENERALISED PREFERENCES AND ENLARGEMENT NEGOTIATIONS AND, IN PARTICULAR, THE DESIRABILITY, AS WE SEE IT, OF KEEPING THEM AS SEPARATE AS POSSIBLE. 2. IN THE FIRST PLACE, THE ARGUMENT ABOUT GENERALISED PREFERENCES

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IS ONE INVOLVING NOT ONLY THE E.E.C. BUT ALSO JAPAN AND THE U.S.A. AND THEREFORE INVOLVES GREATER DANGERS FOR US THAN THE POSSIBLE LOSS OF PREFERENCES (WHETHER COMMONWEALTH OR GENERALISED) IN BRITAIN ALONE. WE THINK IT DESIRABLE THAT THE DIPLOMATIC OFFENSIVE TO BRING ALL THREE 'DONORS' INTO LINE SHOULD BE, AS FAR AS POSSIBLE, A CONCERTED ONE. THE IMMEDIATE DANGER WE HAVE BEEN TRYING TO AVERT IS THAT ONE OF THESE WILL ANNOUNCE THE EXCLUSION OF HONG KONG FROM THEIR OFFER THUS TRIGGERING CFF A SIMILAR DECISION BY THE OTHERS. ONLY IF IT WERE CONCEIVABLE THAT A FAVOURABLE

DECISION WOULD BE REACHED IN ENLARGEMENT KIJOTIATIONS EARLY ENCUGH TO INFLUENCE U.S. AND JAPAN DECISIONS, WOULD WE SEE MERIT IN LINKING THE NEGOTIATIONS IN THE E.E.C. NOW,

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3. SECONDLY, FOR A NUMBER OF REASONS WE ARE RELUCTANT TO SEE THE QUESTION OF GENERALISED PREFERENCES BECOME PART OF THE ENLARGEMENT EXERCISE, AT LEAST AT THIS STACE. WHILE IT IS TRUE THAT REFUSAL OF ASSOCIATED STATUS WOULD AGGRAVATE, OR RATHER FAIL TO PALLIATE, EXCLUSION FROM GENERALISED PREFERENCES, AND INCLUSION BY U.K. ALONG WITH EXCLUSION BY THE E.E.C. CAUSE PROBLEMS OF ASSIMILATION OF PREFERENCES IN THE CONTEXT OF BRITAIN'S ENTRY NEGOTIATIONS, WE CONTINUE TO BE GENERALLY OF THE VIEW THAT IT IS BETTER NOT TO PRESS THE E.E.C. FOR PCSITIVE CONCESSIONS TO HONG KONG IN THE CONTEXT OF BRITAIN'S EITPY, IN CASE IT SHOULD PROVOKE A DEMAND FOR, OR THE IMPOSITION (F NEGATIVE RESTRICTIONS.

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