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'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.
The Views of the Hong Kong Government
11.
We
Officials have had two rounds of consultations with the
Hong Kong Government about the implications for Hong Kong
of British entry into E.E.C. and about what might be done to
mitigate any adverse effect on Hong Kong. The first round
of talks took place in July and the second in October.
discussed the likely impact on Hong Kong's exports to Britain
product by product, paying special attention to cotton
textiles; we touched on other ways in which the Hong Kong
Government thought that their interests might be affected
including the possibility of changes in the international
role of sterling, and the consequences for Hong Kong's
representation in the GATT. Finally we discussed whether it
would be necessary or advisable for Britain to seek special
arrangements for Hong Kong in negotiations and, if so, what
such arrangements should be.
12.
G
The Hong Kong Government acknowledged that, in view of
the diversification of the territory's exports in the
intervening years, Hong Kong was in a less vulnerable position
now than she had been at the time of the previous negotiations.
/Nevertheless,
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