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that there was a close link between our application for membership and the Generalised Preferences Scheme.
Sir
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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 Communi had their own rigid doctrines on a variety of subjects; one of these 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'Neilb/said that we had accepted the Treaty of Rome and what 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 would not be appepted. Mr. Denman said that the Commission's
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