TNAG-0250-FCO40-286-Discussions-on-EEC-negotiations-between-officials-of-Hong-Ko-1970 — Page 50

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that there was a close link between our application for

membership and the Generalised Preferences Scheme. Sir

C. O'Neill said that we had certainly not abandoned the

application for association, even though we did not think it

very likely that we should get it. For the time being this

had been put on one side. He said that the Community had

their own rigid doctrines on a variety of subjects;

one of

those was that, as a general rule, the dependent territories of members were entitled to special relations with the Community.

Consequently the Six felt some degree of embarrassment at not being able to offer association to Hong Kong. Sir David

Trench said that if Hong kong were offered association it

would certainly not turn it down. Sir John Cowperthwaite asked whether Britain's acceptance of the associate status of the existing associates provided a bargaining counter for use

in arguing that Hong Kong should be given associate status. Sir C. O'Neill said that we had accepted the Treaty of Rome and

That was done under it: this meant that we must accept the arrangements with the existing associates. In any event it did not seem likely that this would pose any serious problems

for us.

3.

Sir D. Trench asked what was the present position about transitional periods. He had seen press reports that the

Commission had now put forward proposals for a five year

transitional period. Sir C. O'Neill said that this was only

a recommendation from the Commission to the Six; the Six were not bound by this recommendation but it would inevitably be a powerful element in the position. Sir D. Trench said that by and large Hong Kong would like the transitional period to be longer rather than shorter, but they were prepared to go along with anything that the UK agreed on this point provided it was not discriminatory. He asked about the proposals for cuts in the industrial tariff. Sir C. O'Neill said that this had been contained in our own request for a three year transitional period for industry. While this request was still on the table it seemed unlikely that it trould not be accepted! Er Denman said that the Commission's

/report

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