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CONFIDENT I AL
16)
United Kingdom Delegation to the European Communities, 28, rue Joseph II,
BRUSSELS 4
10 September, 1969
14
My dear Bunny,
E.E.C. Common Commercial Policy: Hong Kong
In your letter to Derek Jones in Geneva HKK 6/24 of 4 July, winding up an earlier correspondence on the attitude to be taken by ourselves and the Hong Kong Government towards the evolution of an E.E.C. common commercial policy, you wrote "The point,
point,...namely the timing of a formal approach to the Commission in Hong Kong's interest, was not discussed: Our feeling is that we should await more authoritative indication of the Community's intentions".
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The Commission have now taken a further step by tabling with the Council proposals dealing with umbrellas, footwear, cutlery and ball bearings (copies of the proposals were enclosed with Jimmy Mellon's letter of 22 August to John Ingram), the first two of which make provision for Community quantitative restrictions on Hong Kong products. We understand from the Hong Kong representative here that the quota levels suggested are not generous. As you will see from the first of the two telegrams which Dodge has sent to his Department (copies enclosed), this new Commission initiative has inspired him to re-open the whole question of a British and/or Hong Kong approach to the Commission and I imagine you may shortly be
involved in discussion of this. I thought that it might be useful, before such a discussion opens, if you were to have our views.
3.
a
It is difficult at this stage to predict how quickly progress will be made in handling these Commission proposals and what the final upshot will be in terms of Council decisions. What can be said is that some halting progress is currently being made towards
common commercial policy; that pressure to make more rapid progress will increase when the Community moves up to and beyond the end of the transitional period at the end of this year; and that the Community is shaping up towards a comprehensive trade policy negotiation with the Japanese which will probably be centred round the sectorial import regime proposals currently being produced by the Commission and sent up to the Council. There is therefore a real possibility, to put it no higher, that some time during 1970 the Community will adopt sectorial import regime proposals; that these will not be particularly favourable to Hong Kong; and that if the Japanese extract concessions from the Community on these products, they may well be at the expense of Hong Kong •
/RECEIVED IN
REGISTRY No.51
LAST
W.S. Carter, Esq., C.V.O., Hong Kong Department,
REF.
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Foreign & Commonwealth Office, LONDON, S.W.1.
NEXT
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Copy to
D. Dunnett, Esq., C.R.E., Board of Trade.
J. Ingram, Esq., Board of Trade.
15 SEP 1969
аккори
J.A. Robinson, Esq., CMG., European Integration Dept.
CONFIDENTIAL