TNAG-0384-FCO40-430-Trade-relations-between-Hong-Kong-and-the-EEC-1973 — Page 59

CONFIDENTIAL

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2619

THE EUROPEAN CASE

8. The European side, while agreeing that it is possible as a

matter of Community law to re-open the matter (Annex C), consider

however that there is an over-riding political objection to this

course because it would involve seeking amendment of the terms on

which we acceded to the Communities. In any case, their estimate,

which is shared by our Permanent Representation in Brussels, is

that we would not get the amendment. So while trying to get it

(and failing) would temporarily ease our relations with the Hong

Kong Government, it would not help Hong Kong in practice. At the

same time it would put HMG in very considerable difficulties, both

domestically and internationally. Domestically because the

Opposition would be quick to say that if the terms of our Accession

could be varied for Hong Kong they could be varied for the United

Kingdom. Internationally, because other Commonwealth countries

would take the same line. We avoided difficulty with India,

Bangladesh and Sri Lanka in Ottawa only by holding firmly to the

line (on the Secretary of State's instructions) that on 1 January

1974 we had no alternative but to begin to raise our tariffs against

them according to the terms of our accession. It might also open

the door to pressure from our Community partners to change aspects

of the treaty which they did not like.

9. The European side of the Office consider, therefore, that the

question should not be re-opened.

CONFIDENTIAL

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