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paper, which is quoted in your minute under reference. However, the implication of the second sentence, with its reference to a "contractual element", is that the Community was under a legal obligation to include Hong Kong in its GSP because it would not grant it associate status and that it is now legally obliged to continue to extend its GSP to Hong Kong and/or not to alter to Hong Kong's disadvantage the terms of its inclusion. In fact the Community was within its rights to refuse Hong Kong associate status and offer nothing in its place, which during the autumn of 1970 seemed likely. The Community obligation, if any, to Hong Kong would appear to moral rather than legal, but Legal Advisers are better placed to give an opinion.
E 18-77
A.P.McNess (Miss)
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