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0003230 G.F. 323
CONFIDENTIAL
Enclosure 1
T.I.A.B. M/17/66
MEMORANDUM FOR THE TRADE AND INDUSTRY ADVISORY BOARD
Developments in the European Economic Community of
particular importance for Hong Kong
(This is the first of a series of reports to the
Board on Community issues of particular importance
for Hong Kong. The four considered here are the
common commercial policy and quantitative re-
strictions, common rules on abnormal trading
practices, common origin rules, and the possibility
of Britain reopening negotiations to enter the
Community.)
Introduction
For some years, the Department has been keeping a close watch on events in the European Economic Community and has succeed- ed in collecting a considerable quantity of useful reference material. Many of the developments of specific interest to Hong Kong are complex. They have also proved difficult to place in a proper perspective from this distance. But now the Department has the benefit of regular reports from its Brussels Office, this last difficulty has largely been removed.
2.
There are four Community issues of particular importance for Hong Kong
the common commercial policy and quantitative restric- tions
the Community rules on abnormal trading practices
common origin rules
the possibility of the United Kingdom joining the Common Market.
and the Department now proposes to keep the Board regularly informed of developments on each of these subjects. It is regretted that for a full understanding of the first three issues, this first memorandum must consider the legal background in some detail. The Department hopes that subsequent reports will be somewhat less dry.
The Common Commercial Policy
Quantitative restrictions
3. Under the heading "Free Movement of Goods", Article 9 of the Treaty of Rome states
"The Community shall be based upon a customs union covering the exchange of all goods and comprising both the prohibition as between Member States of customs duties on importation and exportation and
CONFIDENTIAL
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