TNAG-0045-FCO40-81-Britain-s-entry-into-EEC-effect-on-trade-with-Hong-Kong-1967 — Page 107

I

CONFIDENTIAL

and in general to facilitate the implementation of their

development plans. The means by which this could be done

would include tariff policy, quota policy, export policy and

measures to facilitate the promotion of private investment

and the provision of technical assistance.

(b) Tea

Agreement was reached on a reduction to nil of the

existing Common External Tariff of 18 per cent on tea.

(c) Cotton Textiles

The Common External Tariff would be applied to the

imports in four stages: the first step of 20 per cent.

would be taken on the accession of the United Kingdom to the

a second step of 20 per cent. 18 months later;

Community;

a third step of 30 per cent. a year thereafter; the final

step of 30 per cent. when the Common External Tariff applied

throughout the Community.

Provision was made for a remedial procedure which would

operate if, because of the progressive application of the

common external tariff by Britain, exports of cotton goods

from India and Pakistan were to drop below agreed base levels

to be not less than the average imports into the United

Kingdom and the Six combined in 1959 and 1960.

It was an essential part of these proposals that Britain's

imports of cotton textiles from India and Pakistan would be

limited to approximately the level of the existing voluntary

agreements, whether by extension of those agreements or

otherwise.

It was also an essential part of the arrangements that,

in the case of a substantial increase in British exports of

cotton textiles to the rest of the Community as a result of

British imports from India and Pakistan, Britain would be

prepared to control exports of these goods to the rest of

the Community.

CONFIDENTIAL

/(a)