TNAG-0940-FCO40-1159-Visits-by-Foreign-and-Commonwealth-Ministers-and-officials-t-1980 — Page 39

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take a hard-line stance in the EC.

We can also expect demands for

the poorest suppliers (now including China) to be given preferential

treatment. These issues may possibly be dealt with in future bilateral

negotiations. However some developed importers are calling for a

'recession clause', allowing drastic action to protect their domestic

textile industries. Hong Kong will obviously oppose any such change

in the MFA.

HMG's Responsibilities to Hong Kong

5. Hong Kong will send its own negotiating team, which will sit as

part of the UK delegation (the MFA was signed 'by the UK on behalf of

Hong Kong'). In the negotiations themselves, Hong Kong needs no assist-

ance from HMG. However, the Nine are represented by the EC Commission,

acting on a line agreed at meetings before-hand. Hong Kong will expect

her interests to be protected by the UK at these meetings.

6.

As the metropolitan power, HMG will also be expected to:

(a) give full consideration to Hong Kong's case, and state it to our

EC partners;

(b) obtain as favourable treatment as possible for Hong Kong from the

EC.

In 1977, Hong Kong was dissatisfied with the apparent lack of help from

the UK within the EC. This led to strained relations with Hong Kong.

A repetition in 1981 might have a negative effect on those UK firms

hoping to win Hong Kong contracts. In the wider, political sense, it

would be seen as yet another attempt to distance Hong Kong from the UK.

The Role of HKGD

7. Judging from 1973 and 1977 the lead departments will be TRED and

ECD (E). HKIOD played a moderating role between Hong Kong and HMG in

1977. We can expect to have the following problems:

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