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3. ELECTRONIC PRODUCTS FROM HONG KONG ARE A PARTICULAR PROBLEM (TARIFF ITENS 25.15, 05.13 AND 05.19). THE FRENCH (UND ALREADY HAVE AGAINST THESE HONG KONG PRODUCTS QUANTITATIVE CONTROLS ILLEGAL UNDER GATT) CLAIN THAT AN IMPORTANT DEFENCE INDUSTRY WOULD BE HIT IF HONG KONG WERE CIVEN WHAT WE REGARD AS ITS PROPER
SHAME OF IMPORT OPPORTUNITIES 1. THE E E C. WE CAN HARDLY TAKE
THIS ARGUMENT SERIOUSLY IN VIEW OF QUALITY DIFFERENCES. IF YOU ARE TOLD THAT THE SIX HAD SPECIAL ARRANGEMENTS TO RESTRAIN HONG KONG IN THIS FIELD, E.G. BY INVOKING ORIGIN REQUIREMENTS, YOU SHOULD POINT OUT THAT THE GOODS, IN QUESTION WOULD IN ANY CASE HAVE TO QUALIFY FOR PREFERENCE ON ORIGIN GROUNDS AND THAT WE CANNOT BE EXPECTED TO GO ALONG WITH ANY FURTHER RESTRICTIONS. NEITHER MOULD WE ACCEPT (IN CASE THIS WERE SUGGESTED) A SOLUTION BY WHICH THE U.K. TOOK A LARGER SHARE OF SUCH IMPORTS. THIS WOULD NOT BE A ''COMMUNAUTAIRE' RESOLUTION OF OUR PROBLEM. FOR YOUR OWN INFOR- MATION WE FEAR THAT ANY TEMPORARY ARRANGEMENT OF THIS KIND
WOULD DECOME PERMANENT.
DOUGLAS-HOME
}
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EUROPEAN ECONOMIC DISTN
EID
ADDITIONAL DISTN
FRAME
2
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