TNAG-0045-FCO40-81-Britain-s-entry-into-EEC-effect-on-trade-with-Hong-Kong-1967 — Page 53

CONADENTIAL

The

territory with well developed manufacturing industries. British proposal on the table at the end of the negotiations

contained the following elements:

Jam y

been

Kad Time scale 2 suggested

discussed.

Or

(a) Cotton textiles. British imports from Hong Kong were

to be accorded the same treatment as imports from India,

Pakistan and Ceylon. This would involve: first, a certain décalage in the application of the c.e.t. to imports of these goods from Hong Kong, though not so "soft" as that proposed for imports of other manufactured goods (see below). Second, provision for

a remedial procedure which would operate if, as a consequence of this, exports of cotton goods from Hong Kong to an enlarged Community fell below agreed

base levels related to the level of recent imports.

Third, an understanding that Britain's imports of

cotton textiles from Hong Kong would be limited to

approximately the level of the existing voluntary

arrangements.

Fourth, a further understanding that

if Britain's exports of cotton textiles to the rest

of an enlarged Community increased substantially as

the result of British imports from Hong Kong, Britain would be prepared to control exports of these goods

to the Community.

(b) Other Manufactured Goods.

the same décalage in

the application of the c.e.t. would be granted to imports into Britain from Hong Kong as had been

provisionally agreed for India, Pakistan and Ceylon. (c) Phat there would be provision for periodic reviews

to isolate and examine any problems in Hong Kong's trade

relations with the enlarged Community arising out of

Britain's entry.

A further British proposal that, if these reviews showed that

damage was being caused to Hong Kong trade as a consequence of

CONFIDENTIAL

/British