TNAG-0335-FCO40-371-Visits-of-Secretary-of-State-for-Foreign-and-Commonwealth-Af-1972 — Page 34

CONFIDENTIAL

are yet to take place on the alignment of the UK's scheme with that

of the EEC. In recent discussion in Hong Kong Mr Rippon told the Governor that he thought Hong Kong's representation in Brussels should continue, attached to HM Embassy. It would not be to

the Colony's advantage for it to form part of the British

representation to the Community. Britain's membership of the Community should strengthen her hand in opposing restrictive practices, for example by the French, and preventing other members of the Community from adopting them.

11. Hong Kong's future position in the GATT after we join the EEC was fully discussed by Whitehall officials with the Hong Kong Financial Secretary and others on 3 October. There was complete agreement that the best practical solution whereby Hong Kong's special problems could still be aired in the GATT following our accession would be for the Hong Kong representative to sit as a member of the UK delegation (as at present) but with a separate "UK(Hong Kong)" flag. Hong Kong matters would thus in effect be

excluded from the purview of the Nine. We are now approaching the GATT on this matter through our Mission in Geneva.

AIR TRAFFIC RIGHTS

12.

Earlier this year the Scandinavians revived their request for traffic rights for Scandinavian Air Services at Hong Kong. Hong Kong are anxious that such rights should be granted. The Secretary

of State himself has supported the Hong Kong case with the Secretary of State for Trade and Industry. However, the DTI

remain opposed to the granting of such rights because the

#

CONFIDENTIAL