TNAG-0044-FCO40-80-Exports-to-the-Benelux-countries-aide-memoires-1967 — Page 141

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G.F. 323

CONFIDENTIAL

- 22 -

Closing Session : 11.30 a.m.. Friday.

14th July, 1967

99.

Mr. Sorby said he was glad that agreement had been reached on a set of proposals which were now to be submitted to the respective Governments for approval. This was most important although both sides would find some features of the agreement not wholly satisfactory.

100.

He recalled that, in his opening remarks, he had made plain the Hong Kong Government's concern with three main points, namely –

(a) the need to maintain access to markets and to uphold

Hong Kong's trading rights under the G.A.T.T.;

(b) the need to avoid any interference with the continuity of trade and the importance Hong Kong attached to export control;

and (c) the possible effects on Hong Kong of the evolution of

the E.E.C.'s common commercial policy and of Britain's application for entry into the Common Market.

Although there had been some derogation from what Hong Kong considered as its rights under the Long Term Arrangement, he was relieved that it had been possible to secure export control while catering for the needs of the Benelux countries' entrepot trade. As far as the E.E.C. was concerned, he hoped the Benelux delegation would take back with it the realisation that Hong Kong's desire for liberal treatment was not a request for especially favourable treatment, but was based on the fact that the possibility of the Hong Kong population maintaining, let alone improving, their standard of living depended to a unique degree on the continued ability of Hong Kong's industry, particularly the textiles industry, to export.

101.

He said he would recommend the agreement reached for acceptance by the Cotton Advisory Board and by the Government of Hong Kong. In advance of formal approval, he would give effect to the undertaking from 18th July. He would appreciate hearing from the Benelux delegation, through the Department's Brussels Office, that the unilateral undertaking was acceptable to their Governments.

102.

He was especially grateful to the Benelux delegation for the courteous and friendly spirit in which they had conducted the negotiations, and said that both Mr. Haddon-Cave and Mr. Miller had asked to be associated with this expression of gratitude.

103.

Mr. Verhagen said the Benelux delegation had come to Hong Kong with the firm intention to reach an agreement and had

It was recognised ab initio the principle of export control. true that neither side would find the agreement totally satisfactory but no agreement could in fact be reached except with a spirit of compromise. He was gratified that the discussions had been frank and open on both sides.

104.

He said he would give instructions on 17th July for ending import licensing control in the Benelux countries on imports of cotton textiles from Hong Kong, and undertook to inform the Department as soon as the Benelux Governments had approved the agreement.

/105.

CONFIDENTIAL