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W(B)L 51-7406
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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
what was done under it: this meant that we
-
must accept the existing arrangements
event
In
any
A
with the existing associates. it did not
seem likely in any event 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 transi-
tional 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 now be accepted. Mr. Denman said
that the Commission's report on transitional
/periods
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