CONFIDENTIAL

Treaty of Rome import quotas as well as tariffs should be

averaged among member States.

25. Mr. Haddon-Cave requested an indication from the Board of

Trade on the future role of textile imports. If no reduction

were contemplated, how was it proposed to harmonise present UK

policy with Community policy, since it was unlikely that the

latter would be greatly modified as a result of UK accession

to the Six. Did the UK believe in fact that its import policy

could be harmonised with that of the E.E.C.? On being asked

whether Hong Kong would prefer the establishment of a Community

quota to the present system of national quotas, Mr. Haddon-Cave

replied that Hong Kong wished to see its present access rights

to the UK and E.E.C. markets unimpaired by British entry into

E.E.C.

26. Sir A. Snelling thought that the UK ought to be able to

reply to these points by October since detailed negotiations

would begin after the application to join E.E.C. had been con-

sidered by the Commission. The UK's general strategy might be

to aim at manoeuvering the French into adopting a line contrary

to declared Community policy and this might be most effectively

done if the UK were to adhere to the orthodox Communitaire

doctrine of common quotas and free circulation of goods within

the market.

CONFIDENTIAL

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