TNAG-0279-FCO40-315-Visit-of-Secretary-of-State-for-Foreign-and-Commonwealth-Aff-1970 — Page 91

CONFIDENTIAL

Our approach to Europe

One

The second factor is the pronounced European stance of our

policy in recent years and its consequences for Hong Kong.

of the consequences of our membership of FFTA is that a wide range

of products from EFTA countries now enter the UK duty free whereas

on some of them Hong Kong is charged duty. (Hong Kong is

particularly worried about low-cost Portuguese competition in

textiles). If we obtain entry into EEC, Hong Kong will lost

certainly be shut out from membership on an associate basis and,

losing its Commonwealth preference, will have to compete in the

UK market across the EEC's common external tariff.

(c) The Handling of Hong Kong's Affairs

The third factor is the reaction of Hong Kong to the

successive mergers which led to the formation of the Foreign and

Commonwealth Office. Somewhat unreasoning fears were felt, among

officials as well as unofficials, that those who handled Hong Kong's

affairs in the merged office would have an inadequate knowledge of

its problems; or that Hong Kong's interests would reigh lightly

if they had to be measured in the balance against the greater

interests of our relations with foreign or independent Commonwealth

countries; or that with the heavier responsibilities falling

on Ministers, they would not be able to give full consideration to

Hong Kong's particular interests. By frequent visits in the

past eighteen months we have done something to dispel these fears

and any distrust. However there are still occasional slips in

correspondence emanating from this office which those in Hong Kong

tend to take as a sign that a somewhat unfamiliar hand is at work,

CONFIDENTIAL

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