CONFIDENTIAL
circulation within the enlarged Community.
Hong Kong therefore
forsees the danger that its trade with Britain in cotton
textiles will eventually have to surmount not only the tariff
(to be imposed on 1 January 1972) but also quantitative
restrictions (upon our entry into the EEC). In negotiating
the terms of our entry we shall naturally bear in mind our
extensive textile trade with Hong Kong and other developing
Commonwealth countries and the importance of this trade to the
economies of those countries. It would nevertheless be wrong
to suggest that we shall be in a position to do much to
safeguard Hong Kong's interests in an enlarged Community although
once we are in the EEC we shall of course do our utmost to
prevent the common commercial policy from pernitting e.g. the
inposition of discriminatory quotas against Hong Kong.
in our negotiations would mean the opening of the Western
European market to Hong Kong which would be of considerable
benefit and night well mitigate the other effects on Hong Kong
of Britain's entry to the Common Market.
Success
Commodities Department,
reign and Commonwealth Office,
Don'on, S.W.1.
20 November, 1970
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CONFIDENTIAL