TNAG-0384-FCO40-430-Trade-relations-between-Hong-Kong-and-the-EEC-1973 — Page 153

6.

CONFIDENTIAL

ng Kong maintains that non-discrimination

in the British market, at least is absolutely vital to her interests. Difcrimination Could be disastrous

in economic terms. It could lead to lower wages which

could perhaps result in riots. Further more, the

Bong Kong Government claims that China would have

objections if long Kong were discriminated against.

Hong Kong officials maintain that officials of the

Community except Britain to fight hard for liong Kong

on this.

(C) The Legal Aspect

The Legal Advisers consider that Mr Rippon's

statement regulated definitively the question whether,

and on what conditions, Hong Kong should be included

among the beneficiaries of the EEC's GSP. They do

not think it is now open to us to argue in favour

of any material improvement of Hong Kong's GSP status

in the discussions which are now taking place in

Brussels. In other words, we can plead for long Kong,

but not demand. Moreover the Commis ion have

Lakon

already/the line in the adaptation negotiations that

the question of whether long Kong should be included

among the beneficiaries of the Community's GSP

has been definitively settled during the accession

nogotiņtions and can not be reopened.

(D) Options

8. The question remains however, was Nr Rippon's

statement to the Community intended to be immutable?

It was obviously not the intention of Mr Kippon

hi self nor of officials in 1971 that it should be.

If this is accepted, the next question is, for how

long did Mr Rippon's statement commit us? It was

his stated intention that we should reopen the

question during the negotiations on alaptation and in

4 CONFIDENTIAL

/later

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