TNAG-0045-FCO40-81-Britain-s-entry-into-EEC-effect-on-trade-with-Hong-Kong-1967 — Page 108

CONFIDENTIAL

26.25.

(a) Other Manufactured Goods and Processed Foodstuffs

Agreement was reached that the Common External Tariff

should be reduced to zero in the case of some minor

industrial products, notably certain sports goods.

As regards the remainder of products under this heading,

it was agreed that there should be a substantial delay in

the normal timetable for the application of the Common

External Tariff. The agreement provided for the application

of the tariff by the following stages: 15 per cent. of the

appropriate rate on Britain's accession; 15 per cent. on

July 1, 1965; 20 per cent. on January 1, 1967; 20 per cent.

on July 1, 1968 and the final step on January 1, 1970.

(e) Jute Goods

The provisional proposals agreed provided for a

progressive application of the Common External Tariff. The

United Kingdom would establish a quota for goods (other than

heavy jute goods) from other member States of 3,000 tons.

increasing annually by 700 tons.

would be abolished on January 1, 1970, at the latest.

(f) Tropical Products

Quantitative

restrictions

A suspension of duties (under Article 28) was agreed

for a number of items including cashew nuts and handloom

products.

Since 1962, the Community have suspended the c.e.t. on tea

to zero, and have also suspended the c.e.t., wholly or partially, on certain of the products referred to at (d) and (f) above.

They may well-make either convert some of these suspensions into

permanent reductions and make new reductions as part of the

Kennedy Round settlement. To the extent that the Community will

already have met our point, it will not be necessary to seek to

revive these parts of the agreement.

27.26. The main principles of the provisi onal agreement on cotton

textiles remain valid and we should seek to revive this part of

the provisional agreement. We should however have to look again

COUSTDENTIAL

/at the