TNAG-0463-FCO40-528-Entitlement-of-Hong-Kong-to-EEC-Generalised-Scheme-of-Prefer-1974 — Page 35

3

- 2

and legal responsibility of the UK for Hong Kong's welfare as a Crown colony, committing the UK to improve Hong Kong's standard of living as though it were an integral part of the UK itself. As Mr Callaghan had pointed out in his speech in Luxembourg on 4 June, the UK was at present actively discriminating against Hong Kong - a position which was both illogical and intolerable. As a dependent territory, Hong Kong had no redress except to the UK.

5. M. Tran suggested that to gain greater sympathy for the colony one might arrange a visit to Hong Kong for experts from other Community countries. Community "experts" knew Hong Kong only through her exports and their effects, and were ignorant of the background to them. Perhaps a seminar would provide other members

of the EEC with the background information necessary for an understanding of Hong Kong's difficulties.

Burden Sharing

6. M. Tran stressed the importance of obtaining support at Council level for any improvements to Hong Kong's position, pointing out that it was difficult to persuade the EEC to make a step towards ending discrimination while other donor countries excluded Hong Kong from preferences in textiles and footwear. The Commission might take the initiative in this respect.

Possibility of achieving a special Community relationship with Hong Kong

7. M. Tran suggested that Hong Kong could perhaps eventually be granted some kind of special relationship with the Community which might fall short of Associate status. This might provide a solution for placing Hong Kong on an equal footing with her competitors; there were grounds to doubt its acceptability to other EEC states.

Danger of "Link"

8.

There was general agreement that one should avoid too close a link between the 1975 improvements and the overall renegotiation objectives of -

(i) the improvement of GSP

(ii) elimination of discrimination against

Hong Kong.

Cont'd/.......