0003236
G.F. 323
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officials. The Mission was concerned that "the Community, when formulating its common commercial policy, (might) adopt the restrictive attitude of France (rather than) the liberal policies of the other five countries". Members hoped that Hong Kong would not be treated as an exception, but would have applied to it the Community's global policy.
7.
The reply was hopeful. The member of the Commission responsible for external relations reminded the Mission that within the Community there was a strong liberal movement. This movement was having an effect on France, a traditionally restrictive country which was seeing, in the success of the Community, the rewards of liberal trading policies. He believed that this movement would continue and that Hong Kong need not fear a less liberal attitude in the future. As a result of the explanation of Hong Kong's position during the negotiations for the United Kingdom's entry into the Common Market, the Six recognised Hong Kong as a problem rather than as a danger. Because of this change of attitude and because the Commission itself tried to infuse the most liberal practices of the six countries into common policy, he considered Hong Kong would not have to face increased restrictions as the Community's common commercial policy developed; on the other hand, since Hong Kong has lower production costs than the countries of the Community, there would always be difficulties.
8.
In fact, little has yet been achieved towards establishing a commercial policy. Article 111 requires Member countries, during the transitional period (i.e. before 1970), to secure as high a level of uniformity as possible among themselves as regards their lists of liberalised products. As has been seen in paragraph 5 above, much has yet to be done in this respect as far as Hong Kong is concerned. the other hand, the longer the transitional period is extended, the better the final solution is likely to be for Hong Kong provided France continues progressively reducing her list of restricted items.
9. been
On
Briefly, other moves towards a common commercial policy have
(a) the adoption by the Council on 20th July, 1960 of the
"E.E.C. clause" for inclusion in all trade agreements by Member States with non-member countries, to the effect that such agreements must be subject to immediate re- negotiation when the progressive adoption of a common commercial policy so requires;
(b) the adoption by the Council on 9th October, 1961 of intra-
community procedures for consultation during the negotiation of such agreements;
(c) the adoption by the Council on 9th October, 1961 of a limit
of one year for all such agreements which do not include the "E.E.C. clause";
(d) the compiling of an inventory of commercial agreements by
the Commission;
(e) the adoption by the Council on 25th September, 1962 of an
action programme to include inter alia
(i) harmonisation of the lists of liberalised products
in respect of G.A.T.T. Contracting Parties;
(ii) harmonisation of quota policy in regard to countries
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