CONFIDENTIAL
but the
to pressure to extend the range of Hong Kong textiles
subject to import licensing. At present, within the
Community, the re-export of imported textiles was
limited by various restrictive arrangements;
European Commission were determined to achieve a common
commercial policy by 1970. If free circulation of
imported textiles were to be permitted, categorisation
would have to be tighter and the scope of bilateral
agreements would have to be gradually extended to new
products not yet subject to restraint.
(a) We suggested that one possible line with the Six in the
negotiations, which appeared to accord with the
tentative thinking of Hong Kong officials, would be to
say nothing about textiles; this would imply accepting
the application of the common external tariff, and would
leave it for the Six to raise the question of safeguards
for their own markets if they wished. If they did, we
should be in a rather stronger negotiating position.
Any restriction on exports or re-exports from the
U.K. to the Six would be contradictory to the concept
of a Common Market; and any reduction of imports from
Hong Kong into the enlarged Community would be contrary
to the intention of Article XXIV.5(a) and the Long
Term Arrangement.
The British
20. The question of our imports of cotton textiles is of
course a very wide one, affecting many countries besides
Hong Kong, and notably India and Pakistan.
textile industry is already carrying out a survey into the
productivity of its various sectors, which will be taken
into account by the Board of Trade in consideration of our
textiles policy for the period after the current arrangements
come to an end in 1970. The industry have not been
encouraged to look for increased protection.
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/21. The