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CONFIDENTIAL
being conducted bilaterally between the
Community and Hong Kong on the question of
cotton textile imports to the Six. A
successful conclusion of an agreement here
would help towards solving the problems
for Hong Kong of our entry to the EEC,
since cotton textiles are a major Hong Kong
concern.
38. In other fields we should hope to see
help for Hong Kong in a liberalisation of
world trade within the context of the GATT;
and, perhaps more importantly, by the
generalised preferences scheme within
UNCTAD. We should continue to defend the
"self-election principle" by which
beneficiaries may claim preferences for
themselves, and the inclusion of Hong Kong
within those covered by this principle.
Hong Kong would do well if
(a) the CET was gradually applied to their
exports to the enlarged Community
over whatever transitional periods
are negotiated; and
(b) if the Community should agree to
review the position of Hong Kong when
the results of UNCTAD have become
clearer.
However we must accept the possibility that
the Community will wish to extend quota
restrictions to Hong Kong exports to an
enlarged Community.
(xii) Gibraltar
39. Since Gibraltar is a European
territory for whose external relations we
are responsibla, on British entry to the
D30 Gibraltar will become ourt of the
/Community