TNAG-0463-FCO40-528-Entitlement-of-Hong-Kong-to-EEC-Generalised-Scheme-of-Prefer-1974 — Page 7

CONFIDENTIAL

5. In this context, I should say (and here I am very conscious of stepping outside my own terms of reference) that I am sure it was right for Tsao to have taken part. I gather his participation was largely fortuitous in that he came to Europe for meetings on another subject. But what has been described in telegrams rather coyly as his "manifest Hong Kong identity" is clearly an asset in underlining the distinction between ilong Kong and UK interests.

6. In sum, I see the situation as in some way akin to that which we find on the Protocol 22 front. IIMG can argue as much as it likes within the Nine but what finally carries the day, eg on reciprocity, is the solidarity of the ACP. Hong Kong's dependent status means that the two situations can never be entirely analogous. But I suggest that where problems arise within the Nine over llong Kong we should (so far as the constitutional proprieties both in liong Kong and the EEC permit) bring our partners face to face with the long Kong Government as an entity distinct from that of the UK Government.

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A C Stuart Esq CPM, HIKIOD, FCO

W Nicoll Esq, UKREP, Brussels

CONFIDENTIAL

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