of this year.

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What was envisaged was to extend them on a temporary basis for nine months to carry them to the end of the current period of the CTA, and talks were expected to take place to this end before the end of the year. As regards any further renewal, this would depend on the

position under the CTA but also on the attitude of the Community as a whole (e.g., under the common commercial

policy the Community as such, as distinct from the individual

Member States, might wish to negotiate with Hong Kong, and Hong Kong would need to decide what sort of an arrangement would be suitable in these circumstances). In this connection,

there was the further complication of the French restrictions

under Article 2.

6. I concluded that, for all these reasons, among others, it would be very difficult for Hong Kong at least to conclude

new bilateral arrangements before the future of the CTA was

known; and I felt that the same would be true of a number of

⚫ther exporting countries. The fact was that for purely

administrative reasons, if for no other, I considered that

there would not be time to go through the sort of process

Salib had in mind on this occasion.

7. Salib then asked me how I would envisage the situation

developing. I replied that at the recent meeting of the CTC only two exporting countries (UAR and Korea) had come

out flatly against any renewal of the CTA and that no

importing country had done so. It seemed to me, therefore,

that it should not prove unduly difficult to agree on an extension for, say, two years. I could see Salib's point

about any tinkering with the wording of the CTA opening up a

pandora's box of argument and confusion, but I did think that

it should be possible, for instance, to delete Article 2 and

Annex A. This would be a relatively simple operation and it

/was one

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