Covering Secret
Mr Bottomley
1.
2.
Your minute to me of 22 December 1970.
I attach a brief prepared for the incoming Government last June, together with some short notes bringing it up to date. For convenience, I have had the paragraphs on defence and internal security, together with my comments, put on separate pieces of paper.
3. I understand from Commodities Department that you do not now wish to have a brief on the subject of the timing of talks between Hong Kong and the US Government on the limitation of textile exports from the Colony.
4. The position about points outstanding from the recent talks with the Governor and his officials is as follows:-
(a) At the meeting on the afternoon of 23 November (under
Sir C O'Neill's Chairmanship) the Governor expressed the view that if we joined the EEC we might find ourselves forced to accept something which would involve us "giving instructions to the Hong Kong Government against the Colony's interests". I find it difficult to see how this could happen in any field other than a commercial one and, as I have mentioned in the notes attached, the answer here, in my view, is to pursue the idea of a delegation of authority to the Colony.
(6) At the same meeting, Sir J.Cowperthwaite said that it
would be helpful to Hong Kong in the transitional period. if we could move as quickly as possible to the EEC Rules of Origin and away from the Commonwealth Rules. This view is on record and will be taken into account in due course.
(c)
The meeting on the Tuesday morning, at which you took the Chair, was concerned with the Generalised Preferences Scheme (GPS) and UK textile policy. On the Hong Kong proposal that we should urge the EEC to exclude textiles and shoes from its GPS offer altogether, EID have a sub- mission in draft (which is now with the DTI) recommending that we should not take action as proposed by the Governor. This will be put to Mr. Rippon as soon as possible. TPD are prepare short briefs on Japan and the GPS in the Hong Kong context and the point about reverse Preferences. will remember that Sir J. Cowperthwaite suggested that as Commonwealth Preferences would disappear after EEC enlarge- ment there would be advantage to Hong Kong if the Colony could use her tariff position to offer the donor some quid pro quo. As to our own textile policy, we have not yet received the request for formal consultations.
You
CONFIDENTIAL COVERING SECRET
PARAR 1/1/11
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