TNAG-0938-FCO40-1157-Visit-of-John-Nott--Secretary-of-State-for-Trade--to-Hong-Ko-1980 — Page 25

BRIEF 2

after expiry of the present MFA.

3

Regarding reasonable departures, growth rates less than 6% are allowed in bilateral agreements negotiated under Article 4 of the Agreement and are not reasonable departures.

IF PRESSED

4

Cut backs in 1978 were exceptional to allow access for new suppliers and the Government would hope that by the time the re-negotiations come to this point, the economic situation would be such that cuts would not need to be repeated.

6. UK dimension in EEC/Hong Kong Relations

POINT TO MAKE

1. The UK does defend Hong Kong's interests wherever there are not absolutely over-riding domestic political or economic reasons for doing so.

BACKGROUND POINTS

1. Hong Kong is not a dependent territory included in Treaty of Accession and therefore has direct access to the Commission as does any other third country.

2. There are no known issues textiles apart which might give rise to this agenda item.

3. The UK is the most important market within the EEC for Hong Kong.

4. Although Hong Kong must negotiate with the EEC about access, they are well aware that the Commission takes into account the representations of Member States having an interest.

5. Hong Kong suspects that the UK uses the EEC as a smoke screen to conceal its protectionist intentions.

6. There may be some element of truth in this but Hong Kong knows the UK's attitude toward Hong Kong in the EEC is somewhat ambivȧ- lent.

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