CONFIDENTIAL
8.
(e)
treatment as a special case:
(i) soft décalage;
(ii) limited preferential access into the
U.K.;
(iii) bilateral agreement with enlarged
Community;
(f) passive attitude (even if, for example,
Hong Kong is excluded from (c) above).
Likely consequences of Hong Kong being accorded some form
of special treatment:
9.
(a) severe origin criteria (the excuse being to limit
(b)
the benefit to Hong Kong goods, but the effect
would be restrictive);
stringent market disruption clause. (The Six
might get this anyway as a condition of U.K.
entry itself, or via a loss of Hong Kong's GATT
relationship with them as a result of U.K. entry).
Note on loss of Commonwealth preference in U.K.:
(a) 17% of Hong Kong's domestic exports sent to
U.K. in 1966 (c.f. 20% in 1960);
(b) (1) 74% of this trade is concentrated in
(ii)
seven 3-digit groups, viz:
preserved vegetables
cotton fabrics
made-ups (all textiles)
cutlery
clothing (all textiles)
footwear
optical instruments
average dependence of these groups
on U.K. 24%, ranging from cutlery
at 65% to clothing at 20%;
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/(c)
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