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your exports now go to Britain, and the
proportion of your exports to the present EEC is scarcely less (9.4%). As for Britain, our exports to Western Europe, our fastest growing market, are now twice as great as our exports to the Commonwealth,
and our exports to the EEC increased 2 times
between 1958 and 1968.
6. We see no great difficulty over the process of removing tariffs between the UK and the Community over an appropriate transitional period. Together with this process, we should have to adopt the CET. But the difference between the general level of our present tariff and the CET, after the Kennedy Round reductions, is not in general so great as to raise insuperable problems, and we should, of course, seek a transitional
period for adoption of the CET.
10. It would not be right for me to comment on reports of statements by other Commonwealth
Ministers. But I can say that we maintain
continuous and close contacts with Commonwealt
Governments about our application, and you will know that I am visiting Australia and
New Zealand, at the kind invitation of these
Governments, when I leave Hong Kong.
11. I certainly think that an enlarged Community, including Britain, could offer
Hong Kong an extremely attractive market. Entry on fair terms should stimulate Britain's growth rate and provide a more rapidly growing market for your exports.
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