TNAG-0250-FCO40-286-Discussions-on-EEC-negotiations-between-officials-of-Hong-Ko-1970 — Page 60

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Rules. The EEC Rules were based on the transformation of

materials in Heng Keng and such a move would help a flexible

transformation. At present almost all Hong Kong's experts to the Six were covered by Certificates of Origin. Mr. Gildea

said he thought this problem needed further study. It was

likely that we would wish to continue with the present Rules

of Origin as long as possible. We have also to consider the

question in relation to the position of other Commonwealth

countries benefitting from the Generalised Preferences Scheme.

Sir D. Trench said that Hong Kong had a reputation fer

overcoming difficulties. We must not put too much faith in

this.

9.

The Borgésbennicy èfterthėsh entry into the Communities could be very far reaching for the ordinary citizen of Hong Kong and if the outcome was unfavourable, the Government of Hong Kong would be blamed. Sir J. Cowperthwaite agreed; he said that the position was different from what it had been during the 1961/63 negotiations: since then many of Hong Kong's

competitors had made significant advances. The position of Hong Kong was that she did not wish to be discriminated against. Sir C. O'Neill said that we were well aware of the problems wnich British entry into the Communities would pose for Hong Kong and we would do all we could te mitigate them.

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