14.
The Governor thor raised the question
of the application of the new tariff on
imports of Commonwealth cotton textiles in the
U.K. He said that, if implemented, this would
face Hong Kong with a tariff with no decalage
as from the beginning of 1972. If the U. K.
joined the E.E.C. shortly afterwards, there
would then be both tariffs and quotas. He
proposed that the decision should be recon-
sidered and perhaps Le put off until 1973 when
it should be known whether the U.K. Was
definitely entering the E. E. C.
15. Mr. Carey confirmed that the present
overnment had reaffirmed the previous
Government's policy, and had also accepted the
implementation date of 1st January, 1972.
16. Sir J. Cowperthwaite said that, despite
assurances to the contrary, there had been no
chance of consultations before the policy
had de decisions had been made in 1969. But it pas
agreed that Hong Kong's reactions shouli ba
made known to the U.A. in due course, quite
apart from the complication of E.E.C. enlarge-
ment which had since arisen. He said that
(-inrespective of EEC intr- Hong Kong had always believed that ultimately
Lancashire would be protected by both a tariff
and a quota system ind vinowy Laertainly, & systemjubavnowy a
on top of a tari}{
quota system was inevitable under the C.C.2.
should Britain join the Community.
The point
now was that, in the context of the present
negotiations for British entry into the E.E.C.,
a tariff would be inevitable anyway and a
decalage arrangement should apply to cotton
textiles as to other products. Notice of
9.
CONFIDENTIAL
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