TNAG-0281-FCO40-317-Visit-of-the-Chancellor-of-the-Duchy-of-Lancaster-to-Hong-Ko-1970 — Page 71

CONFIDENTIAL

UK EYES ONLY

GPAPAA reg tega pogË AUR TU AÐ Về Tư TẾT VANS AREA, DE Pageterans, LA QUIN = 2 SAAT pada, materie pat a venerant and

Background

HONG KONG AND THE ELC

The factors affecting Hong Kong in relation to cur

entry into the Communities are set out in the attached

note WGE(70)37 which has been prepared by Board of Trade

officials with a view to eventual submission to

Ministers.

2. In summary, the conclusions of the note are: Orgies (1) Hong Kong's problem would be one of access to

001.

markets;

(ii) there is no prospect of association for Hong Kong

with an enlarged Community;

(iii) we should therefore have to apply the CET in

full to Hong Kong after a transitional period;

(iv) Hong Kong could probably cope with this;

(v)

but it would be more serious if she were excluded

from the UNCTAD Generalised Preference Scheme,

and the developed countries gave preference to

her competititors;

(vi) 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 of the problems of Hong Kong's

relationship with an enlarged Community,

including her treatment under the UNCTAD

Preference scheme.

CONFIDENTIAI, UK MYES ONLY

13.