TNAG-0281-FCO40-317-Visit-of-the-Chancellor-of-the-Duchy-of-Lancaster-to-Hong-Ko-1970 — Page 76

CONFIDENTIAL UK EYES ONLY

both of the Generalised Preferences Scheme and of our entry..

strikes us as the most effective way of securing what modest

I should be very interested to

concessions may be possible.

hear your views on all this.

Benefits for Hong Kong

10.100

I am very well aware of the problems which our entry

may pose for Hong Kong. Britain too will, in the short term

at least, have a substantial price to pay. But it would be

quite wrong for us to concentrate exclusively on the negative

aspects. Entry into the EC on fair terms should stimulate

Britain's growth rate and provide a more rapidly growing and

prosperous market for your exports. Furthermore, our

influence in the huge trading bloc of an enlarged Community

will be firmly in the direction of an outward-looking trading

attitude, and in favour of the minimum of restrictions in

trade with Hong Kong. In the long run entry for Britain on

fair terms should offer great opportunities for Hong Kong

as well as for Britain.

Li

CONFIDENTIAL UK EYES ONLY