TNAG-0384-FCO40-430-Trade-relations-between-Hong-Kong-and-the-EEC-1973 — Page 9

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CONFIDENTIAL

Secretary of State

122

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HONG KONG/E.E.C.: GENERALISED PREFERENCE SCHEME

You will remember that you discussed this

subject with Murray MacLehose recently. I

mentioned to you then that the Department was

divided. The European section did not want us to

make an approach to the Community whilst the Far

Eastern section strongly recommended that we

should carry out Geoffrey Rippon's promise by

making an approach as soon as possible.

The problem is further complicated by the

probable visit by the Prime Minister to Hong Kong

(on his way back from China) in January next year.

If the Government were to take a decision not to

approach the European Community on Hong Kong's

behalf, the Prime Minister would almost certainly

be faced with embarrassing questions in Hong Kong

and there might well be allegations of "breaking

trust".

I held a meeting last week, attended by

Mr. Robinson, Mr. Youde, Mr. Butler and Mr. Stuart,

to see if a compromise could be achieved between

the two viewpoints.

However, it became clear that

-1-

CONFIDENTIAL

/compromise