TNAG-0337-FCO40-373-Visit-of-the-Chancellor-of-the-Duchy-of-Lancaster--Sir-Geoff-1972 — Page 61

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expanding Britain as a member of the Community will be a

better market for Hong Kong's exports.

Present Position

3. Although constitutional responsibility rests with the

British Government, in practice Hong Kong conducts its own

commercial relations over a wide field where its own interesta

are primarily concerned. Hong Kong has a Commercial Counsellor

attached to our Embassy in Brussels not accredited in any

way to our delegation to the EEC who acts as an informal

link between llong Kong and the EEC on day-to-day matters.

The position after Britain's Accession

4. Great care was taken during the enlargement negotistions

to ensure that no part of the EEC or Euratom treaties or of

the Treaty of Accession itself would apply to Hong Kong.

This principle is reflec ted in Article 26(2) and Article 27

of the Act of Accession.

5. There is no reason why these arrangements should not

continue after our accession to the EEC but Hong Kong eve

worried about what they call "the institutional arremata Geit

to be made "for dealing with Hong Kong's relationship with tha

Community" after our accession. They have asked would Hear

Kon; representatives still be able to deal with the Comineion:

and should "a clear channel" be established through which Hor

Kong could liaise with the British Government on any

difficulties that may come up?

Hong Kong's GATT relationship

6.

We have already had preliminary discussions with Hong

Kong on a linked issue that of Hong Kong's GATT

B

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/relationship