CONFIDENTIAL
between the commercial and industrial policy of Great
Britain and the Community in a sector such as the textile
industry could also raise delicate problems for the
Community's industry, which as a result of the agreements
recently concluded in Geneva is already required to leave an
increasing part of the market to developing countries.'
The following passage in the section on the application of the
common customs tariff may also be relevant:
'Furthermore it would be appropriate, when the exact scope
is being decided of the applicants' acceptance of the
common customs tariff, to examine the case of certain
products or sectors of particular importance where
acceptance of the customs duty can only have full
significance if it also implies acceptance of a certain
number of fundamental decisions of industrial or commercial
policy.'
All that can be inferred with reasonable certainty from this is
that the Commission seem to think that the Community will need to
seek special arrangements in their own favour on textiles.
6. The Commission's Report will be considered by the Council
of Ministers of the Six at their meeting on 23 and 24 October.
The outcome of this meeting will be known during the course of the
talks with Hong Kong.
Hong Kong Industrial Inquiry
7.
Since the last round of talks, the Commerce and Industry
Department in Hong Kong have completed a statistical exercise, the
ん items for which Hong Kong is particularly dependent on the British
market. They have circulated their results to commercial and
industrial associations in Hong Kong and invited their assessment,
for each group of products, of the likely impact of British entry
into E.E.C. It is therefore possible that in the second round of
consultations the Hong Kong delegation will be able to confront us
with a good deal of new factual material on particular products.
CONFIDENTIAL
/The