Reference..
(ii) Our objectives in any ensuing discussions
with the Community. The most favourable outcome would be EEC agreement to put everything on the unrestricted or surveillance lists so far as Hong Kong is concerned; but in view of the French attitude and the complication of Japanese trade this is a quite unlikely outcome. Hong Kong, I am sure, realise this and reading between the lines of paragraphs 22-25 of their memorandum it seems to me that they are hankering after bilateral discussions, with the Community leading to voluntary undertakings to restrain exports at negotiated levels (as distinct from arbitrary import controls). As you may know, such undertakings have been given by Hong Kong in the field of non-cotton textiles and have become a controversial issue in that the Board of Trade sees them as being in conflict with the UK long-term objectives of bringing all quantitative restrictions within the framework of strict GATT criteria and under GATT supervision.
(iii)
If a formal approach is to be made, its timing and its implications for the UK application to enter EEC. I can see that to some extent these considerations may be related. What I suggest we must bear in mind on timing is the point made in paragraph 3 of Mr. Stewart's minute of 30 September i.e. if EEC policy once crystallises it is virtually impossible to change it on account of the complexity of the process of consultation and internal adjustment between member countries which precedes decisions. This indicates that we ought to make our points before the Council of Ministers has taken any decisions on the five proposals now tabled by the Commission.
1 October, 1969
s. Carter Са
S
(W. S. Carter)
Hong Kong Department
Copy to: Mr. J. A. Robinson,
European Integration Dept.