Line to take
There would be no advantage in initiating discussion on the working of the present EEC/Hong Kong Agreement. In practice the specific problem outlined at 2 above is likely to be settled to mutual satisfaction at consultations to be held in Brussels on 10 February.
We do not know what the future of the Agreement will be. This will depend in large measure on the outcome of the review of the MFA. But it is certain that the Community will not be contemplating the removal of all restraints from Hong Kong on 1 January 1978; moreover, whatever succeeds the present agreement some means will have to be found of dealing with the imperfections in the present agreement which Hong Kong's eager pursuit or advantage has disclosed.
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