TNAG-1148-FCO40-1428-Effect-on-Hong-Kong-of-the-Portuguese-and-Spanish-accession--1982 — Page 10

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between the UK and Portuguese officials on how to

proceed would be most helpful. Mr Hannay said he had

already raised with Dr Marta the question of a

Portuguese officials visiting London. They could talk

to the various British experts who made claims on the

structural funds and also to the Intervention Board and

see how we co-ordinated European Policy.

7.

Dr Salguiero said that as regards other chapters,

he did not expect any real difficulties except as

regards sugar. The Portuguese had hoped to get some

sugar under the ACP quota. Mr Hannay said this was not

feasible. The sugar was not allocated by countries but

contracted. It would help Portugal's case with the

Community if she moved her supplies away from Cuba.

Perhaps they would have the opportunity to buy some of

the ACP sugar outside the 1.3 million tonnes, eg from

Zimbabwe, Ivory Coast or the French DOMS.

8.

Mr Hannay explained the background to the UK budget

problem and our wish to have a fundamental look at

Community finances. Ideally, this should be based on

the principle of contributions commensurate with

prosperity, with the less prosperous Member States

receiving more. This would obviously be of importance

to Portugal.

9.

Dr Salquiero raised the question of the need

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