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3. But the potential damage to Hong Kong's trade is by no means confined to the application of the common external tariff. Since 1962 the community has made steady progress towards a common commercial policy, particularly in the textiles field and we assume that we shall be consulted beforehand should any modification of the United Kingdom's import policies be suggested at any stage in the negotiations and that our legitimate interests will be fully protected. You are aware that there are already signs that the community's developing common commercial policy will severely damage our present position in the markets of those member states which have granted liberalised entry to Hong Kong goods in recent years.
40 We welcome the suggestion of early bilateral discussions on Hong Kong's specific interests and would be glad to know when these might be arranged, particularly as we would wish to have early and much more precise advice as to the actual starting point envisaged for Hong Kong (your paragraph 4).
(Passed D.S.A.0. for Brussels and Geneva)
European Economic and Political Distribution
Copy also sent to:-
Commonwealth Office (Western Economic
Dept.)
Mr. Gallagher
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