TNAG-0281-FCO40-317-Visit-of-the-Chancellor-of-the-Duchy-of-Lancaster-to-Hong-Ko-1970 — Page 133

NOTHING TO BE WRITTEN IN THIS MARGIN

Registry No.

SECURITY CLASSIFICATION

Top Secret.

Sccret,

Confidential. ✔✅

Restricted.

Unclassified,

PRIVACY MARKING

In Confidence

To:-

12 Pioase

DRAFT BACKGROUND BRIEF

Type 1 +

together.

From

HONG KONG AND THE EEC

Telephone No. & Ext.

Department

The factors affecting Hong Kong in relation

to our entry into the Communities are set out in the

attached note WGE (70) 37 which has been prepared

Monistus,

by Board of Trade officialsh a view to weutual Submissión li

In summary, the conclusions of the note are:

Hong Kong's problem would be one of access to markets;

2.

i

ii.

iii

iv

vi

3.

there is little or no prospect of association for Hong Kong with an enlarged Community; we should therefore have to apply the CET in full to Hong Kong after a transitional period; Hong Kong could probably cope with that; but it would be more serious if she were

excluded from the UNCTAD Generalised Preference Scheme, and the developed countries gave preference to her competitors;

we should try to prevent the Common Commercial Policy developing in such a way as to impose discriminatory quotas against Hong Kong, and we should try to do this by discussions at an early stage with the Six the problems of Hong Kong's relationship with an enlarged Community, including her treatment under the UNCTAD Preference scheme.

There are therefore no specific assurances which

can be given to Hong Kong, and the Hong Kong Government

will not seriously expect them. (In 1967 Hong Kong

accepted, in discussions with HMG, that association

was impossible and that Britain would have to apply

the CET against imports from Hong Kong). The Hong Kong