TNAG-0250-FCO40-286-Discussions-on-EEC-negotiations-between-officials-of-Hong-Ko-1970 — Page 59

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had not expected a little time ago, that we should move as fast as we had in our negotiations with the Six, or that pregress

●n Generalised Preferences elsewhere would be so slow. Ner had they thought that the EEC offer would turn out to be a major factor in determining the American attitude. He now accepted that we had been right to open up this issue in our negotiations with the Six. Sir C. O'Neill said it might be worth discussing later the implications of the EEC offer as contained in Codel telegram No. 299. Mr. Hannay said that the Working Group of the Community was discussing the modalities of the Generalised Preferences Scheme offer for Hong Kong rather than its principles. It was possible that they would get bogged down and would put in a disagreed recommendation. It was difficult to say at this stage when we could get into the act. Sir D. Trench asked whether the proposals contained in Codel telegram No. 299 applied only to Hong Kong ar to other beneficiaries as well. Mr. Hannay said they applied only to Hong Kong: the Working Group's terms of reference were confined to Hong Kong and they were not qualified to make recommendations on other territories.

make recommend the question

recommendations of other territoriesompensation to Hong

Kong for the effects of British entry inte the Communities, Sir J. Cowperthwaite said there had been examples of countries

refunding the proceeds of duties to their dependent territories. Duty free entry helped Hong Kong's trade; to impose a tariff would effect it adversely. They were not thinking in terms of a refund to the producers adversely affected but rather of a centribution for the general benefit of the population of Hong

Kong. Sir C. O'Neill said that if we contemplated such a course, we should find ourselves paying out duties twice over, once te the Community and once to Hong Kong. It was also possible that

ir we made such a concession to Hong Kong other Commonwealth

countries would claim similar refunds. Sir J. Cowperthwaite

pointed out that Hong Kong was a dependent territory whereas

the other Commonwealth countries who might be interested were

independent. Mr. Gildea said he thought it unlikely that Whitehall

Departments would take kindly to a scheme of this nature.

8. Sir J. Cowperthwaite said it would be helpful to Hong Kong

in the transitional period if we could move as quickly as

possible to the EEC Rules of Origin and away from the Commonwealth