CONFIDENTIAL
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BRITISH TEXTILE POLICY
STATEMENTS MADE TO HONG KONG OFFICIALS
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ANNEX
1. Consultations with Hong Kong Officials at FCO 23.11.70
"Sir D Trench asked whether there were likely to be any developments of interest to Hong Kong in relation to the Common Commercial Policy. Sir C O'Neill said that it was our hope that until we were members of the Community there would be no developments which would adversely affect Hong Kong. When we were members we would of course do our best to protect Hong Kong's interests. Mr Gildea added that if the Six moved before we became members we would make representations on behalf of Hong Kong if the measures proposed appeared likely to affect the Colony adversely."
2. Consultations with Hong Kong Officials at FCO 24.11.70
Mr Carey denied that the decision (ie to introduce the tariff on 1.1.72)
was intended to reinforce protection. HMG considered that one consequence
might well be that UK imports from developing countries would rise while those from Commonwealth developed countries (ie Canada)- and non-
Commonwealth developed countries too - were expected to fall. Both the
previous and the present governments had taken the view that duty free
imports as such were a major element in the difficulties experienced by
Lancashire despite quantitative protection over the last 12 years. He
denied that the original intention was that quotas should eventually
be re-imposed, although he admitted that ,on joining the EEC, the UK
would have to adapt the new policy to conform to the CCP. He thought,
however, that there was no reason to suppose that cotton quotas would
continue indefinitely and pointed out that the UK had been ready to see
the CTA phased out. The circumstances laid down by the previous President
of the BOT for the re-imposition of quotas were very limited in that there
would be no return to comprehensive quotas. An upsurge of imports of
garments from Hong Kong would not necessarily lead to the re-imposition of quotas, even on a selective basis.
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