TNAG-0250-FCO40-286-Discussions-on-EEC-negotiations-between-officials-of-Hong-Ko-1970 — Page 57

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There would be a further cubiy the

It

report on transitional periods went some way to meet us. proposed that the cuts in the tariff which would take place on 1 April, 1973, would apply to internal tariffs only.

the internal tariff on 1 January,

1974, and at the same time a move to the CET equal to the

combined internal cuts. The timetable for the remaining

moves towards the CET had not been specified. Mr. Denman

thought that it was unlikely that our interests and those of Hong Kong conflicted in this matter. The rapid achievement of an enlarged market and the expansion of the British economy was in the interests of both parties.

4.

Sir D. Trench asked whether there were likely to be any developments of interest to Hong Kong in relation to the Common Commercial Policy. Sir C. O'Neill said that it was

our hope that until we were members of the Community there

would be no developments which would adversely affect Hong

Kong. When we were members of the Community we would of course do our best to protect Hong Kong's interests. Mr.Gildea added that if the Six moved before we became members we would

make representations on behalf of Hong Kong if the measures proposed appeared likely to affect the Colony adversely.

5. Sir D. Trench enquired about the effects on the consti- tutional position of Hong Kong in the event of British member- ship of the Communities. If, for example, Britain entered the Communities and found herself forced to accept something which involved her giving instructions to the Hong Kong Govern- ment which were against the latter's interests, what would she do? As things now stood conventions had grown up which limited, in practise, such use of the UK's sovereign powers

in relation to Hong Kong; but the Community might not appreciate this. Sir C. O'Neill said that most of the action which could injure Hong Kong would be taken by the Community at the Community border, and Hong Kong itself could hardly be called on to take action in such cases. Sir D. Trench said

this was perhaps a theoretical question, but it could happen

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