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decide, to adopt a more restrictive policy on the quantitative
limitation of imports of cotton textiles; third, that the develop-
ment of the Community's common commercial policy in general will
make it necessary for Britain to restrict imports from Hong Kong
of other goods. The Governor has asked that our opening position
should be to request association under Part IV of the Rome Treaty
for Hong Kong, which he recognises to be unacceptable to the Six,
but which he thinks would have great presentational value in Hong
Kong. We have made it clear that we see no advantage in putting
to the Six proposals which we know in advance to be unacceptable.
Another idea which we know to have received consideration, at any
rate at the working level in the Hong Kong Government, is that we
should seek an arrangement under which Britain continued to import
duty free from Hong Kong either certain specified products which
while not now of great importance to Hong Kong may become so in
the future, or a certain group of products which in a given base
year made up an agreed percentage of Hong Kong's exports to
Britain.
Recommended Line
.10. We should ask Hong Kong Officials in what way they think following their interests might be safeguarded and then comment on the lines.
suggested bolem We feel that the most realistic approach and the
one most likely to secure the best available arrangements for Hong
Kong would be to revive the request we were making at the close of
the previous negotiations 1.e. for cotton textiles and other
manufactured goods the same transitional periods which we had
secured for India, Pakistan and Ceylon, plus provision for
periodical consultations between the enlarged Community and the
Government of Hong Kong to review the development of trade between
the Community and the territory. We might also seek agreement
that if it was shown that damage was being caused to Hong Kong
that,
as
a consequence of British entry, remedial action should be taken;
but the Six might well again insist that this should be counter-
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