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(a) Cotton textiles British imports from Hong Kong were
to be accorded the same treatment as imports from
India, Pakistan and Ceylon. This would involve:
first, a certain decalage in the application of the
c.e.t. to imports of these goods from Hong Kong,
though not so "soft" as that proposed for imports
of other manufactured goods (see below). Second,
provision for a remedial procedure which would operate if, as a consequence of this, exports of cotton
goods from Hong Kong to an enlarged Community fell
1clow agreed base levels related to the level of
recent imports. Third, an understanding that
Britain's imports of cotton textiles from Hong Kong
would be limited to approximately the level of the
existing voluntary arrangements. Fourth, a further
understanding that if Britain's exports of cotton
textiles to the rest of an enlarged Community
increased substantially as the result of British
imports from Hong Kong, Britain would be prepared
to control exports of these goods to the Community
(b) Other Manufactured Goods. The same decalage in
the application of the c.e.t. would be granted to
imports into Britain from Hong Kong as had been
provisionally agreed for India, Pakistan and Ceylon.
(c) There would be provision for periodic reviews
·
to isolate and examine any problems in Hong Kong's
trade relations with the enlarged Community arising
out of Britain's entry
A further British proposal that, if these reviews showed that
damage was being caused to Hong Kong trade as a consequence of
British entry, remedial action should be taken was, at the time
of the breakdown, subject to a counter-proposal by the Six
that remedial action should also be taken if any Hong Kong
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