ENG-1962 — Page 117

INDUSTRY AND TRADE

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thereby on an important section of Hong Kong's export trade which exceeds one-third of the whole.

During the first phase of the negotiations in Brussels between Britain and the Six, which ended on 5th August, it became clear that the Six were not prepared to contemplate association for Hong Kong under the Treaty of Rome or to make other arrange- ments which would preserve duty free entry into the United Kingdom for Hong Kong products. So far as association was con- cerned, the Six maintained that the economic position in Hong Kong was quite different from that of the States for which associa- tion had been devised. They also made it clear in the negotiations generally that they attached importance to any arrangements to help Commonwealth countries in the field of industrial products being so designed that they included from the beginning some recognition of the common tariff as the essential feature of the Community Customs Union. No further formal negotiations con- cerning Hong Kong took place during this phase, but at the ministerial meeting which ended on 5th August it was agreed that member States should work out with HM Government before Britain's entry into the Community appropriate measures for Hong Kong in the field of trade relations. In September the Financial Secretary attended the Commonwealth Prime Ministers' Conference in London, at which the terms of Britain's accession to the Com- munity were the main subject under discussion.

Early in October a delegation of six unofficial members from the Executive and Legislative Councils met in London to discuss Hong Kong's problems with the Secretary of State for the Colonies, Mr Duncan Sandys, and the Lord Privy Seal. The British Ministers took note of the points raised and gave an assurance that they would bear them in mind in the course of further negotiations in Brussels. Several members of the delegation subsequently held talks on the Continent with senior officials and leading industrialists of the Common Market countries.

In November the Financial Secretary attended further meetings in Brussels when the question of Hong Kong was again discussed. By the end of the year, however, the Six had not determined a negotiating position in respect of Hong Kong and it was not