CONFIDENTIAL
BACKGROUND
Faragraph 36 of Mr Brown's statement of 1967 included
Hong Kong by implication among those territories for which
association was not appropriate, and whose position we should
therefore wish to discuss with the Six.
2. If no special arrangements were made for them the
Common External Tariff (GET) would be applied to Hong Kong's
exports to Britain over a transitional period following British
entry to the EEC. This would mean several years' grace for
Hong Kong before she felt the full impact of the CET on her
exports to the UK.
Cotton Textiles
3. This subject is covered in paragraphs 12 and 13 of Brief
No.8.
GATT
4.
Through the UK Hong Kong has GATT rights and obligations
vis-a-vis the C, but not vis-a-vis the UK. After British
entry to the C we would be in a position to use our
influence within the Community on Hong Kong's behalf.
Liberalisation of world trade under the GATT would of course
help Hong Kong in the long run. It would however be unrealistic
to expect another Kennedy Round exercise in the immediate future.
British accession to the 3 could stimulate a minor round of
multilateral concessions. (There would be a danger that Britain,
by extending the Community's preferences to certain developing
countries but not to Hong Kong, might find herself under attack
from the latter).
CONFIDENTIAL
/Generalised
No comments yet.
Private notes are available after approval.