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Hong Kong for all textiles and perhaps footwear. The Justification for this is that the U.S. and U.K. have excluded textiles and the U.8. footwear in addition. The Americans can then hardly complain if the EEC follows their example vis à via Hong Kong. Ideally, I would also prefer it if the EEQ excluded Taiwan and 6. Korea also on textiles, especially if they were later to sign restraint agreements with the U.8. on non-cotton textiles. But this ediitä onsl gloss is not essential.
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We can then point out that, on this basis, over a half of present Hong Kong exports to the EEC would be excluded. On the non-textile non- footwear items where she would be included, her exports to the U.S. are for higher than to the BEČ (25% of total exporte as against about 4%). If the BEC were to exclude Hong Kong on these items and the U.3. followed suit Hong Kong would suffer Waarof severely from competition in the U.S. market from This could lead Taiwan, S. Korea and Singapore. རཎཾ ༈
to diversion of exports to the U.K. and EEC markets 4th no where Hong Kong's commercial connections are better
than these other countries'. Pressure on the European market from Hong Kong would then be
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Whether Esc
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agree
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0. On the other hand, if Hong Kong is included in the ECC the duty quotas and 50% cut-offa, an well as the limitation of what can be produced by a population of 4 million people, will be adequate safeguards against market disruption. Furthermore the U.8. would then be bearing a bigger share of
Finally, this would go a long way towards solving the problem of Hong Kong in the enlargement negotiations.
The US the "burden".
meing them try a further wriggli but on these f grands
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We could say that we would quite understand it if the EEC made the inclusion of Hong Kong on these terms conditional on the U.8. also including, art her in her scheme. (wil nome exceptions but no cecing +50% protection).
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10 Another possibility which I have in mind, strony, but which I don't think is yet ripe to put to
anyone, is that at the time of the major review of the GPS after five years consideration should
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