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4.
From such soundings as Goldsmith and I obtained in Paris, I would
Di Martino confirm paragraph 2 of A.L.'s memorandum referred to above. (Commission) told us that the Community line will now probably take the
following form. There will be no exceptions as such.
Instead there
In products where
There might,
will be an extensive use of duty-free tariff quotas.
there are little or no LDC exports to the Community such quotas would only be notional and would not be published (i.e. in practice there would be free entry, but the Community would reserve the right to fix tariff quotas at a later stage if the situation as it developed should so warrant).
In other products, where there was a significant trade, substantive
tariff quotas would be established; these would probably provide for
duty-free entry at existing levels of trade plus, say, 50%. however, be some more sensitive products where such relatively generous
tariff quotas could not be conceded. In the case of cotton textiles, quotas at the existing restraint levels would also be admitted free of
duty. Di Martino pointed out to Goldsmith that, because of the very
substantial imports by the Community from Hong Kong across a wide range of products, this sort of formula could not be applied so extensively if
Hong Kong were included. For instance, the number of products where "existing trade plus 50%" could be given would be significantly reduced
The impression and there might even have to be some actual "exceptions".
given was that, in these circumstances, the Commission were maintaining their original proposal for the complete exclusion of Hong Keng from the
EEC scheme.
5.
This information was supplemented by a conversation I had with
Mueller-Thuns, the German delegate. He asked me whether I was concerned
about the Community attitude on Hong Kong. I replied that I obviously
was and that surely some compromise could be found which could take care
of Community worries where Hong Kong was a substantial supplier compared
I went on with other LDCs, but which would not exclude her altogether.
to emphasise that the exclusion of Hong Kong from preferential benefits in
co large a market as the EC could have materially damaging consequences,
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