that the community were finding it difficult to reach
agreement on common commercial policy and that bilat-
(? E.E.C) eral discussions between individual countries and the
Japanese had been suggested. Mr. Ernst had, when he
visited Hong Kong, suggested that agreement on restri-
ctions to be applied to Hong Kong trade might be justi-
fied by a loose interpretation of Article 19 of the
GATT. However, Hong Kong had rebuffed this suggestion.
Mr. Jones said that in his experience, however, the
fact that the community was aiming at a common commer-
cial policy did not always prevent individual members
of the community preventing the import of commodities
which they wished to keep out but which were allowed
in freely by other members. This happened whether or
not Article 115 was invoked by the territory concerned.
2. In the course of discussion it was pointed out
that the Japanese maintained a wide range of restric-
tions over imports from the EEC. Their general policy
appeared to be like our own, to move gradually towards
a policy of liberalisation. Thus in the formulation
of a common liberal commercial policy the EEC, when
dealing with Japan, would find that Japan would be in
a position to bargain with the removal of her own
restraints.
Hong Kong having no such restraints her-
self over imports from the community was in a different
position and it was agreed to ask Mr. Ernst how and
when EEC proposed to deal with Japan.
3. Mr. Goldsmith said that to avoid Mr. Ernst being
put into a position where he was able to say after the
meeting that this had been a formal occasion of con-
sultation with the Hong Kong authorities the members
present at the meeting would be kept to a minimum in
order to achieve informality.
/ Textiles
* See
MWE 5/306/1
atid
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