TNAG-0045-FCO40-81-Britain-s-entry-into-EEC-effect-on-trade-with-Hong-Kong-1967 — Page 65

Copied to:

this total in 1966. Un the other hand, cotton pless goode verja only 1.7% of Hong Kong's apports to these countries in the saso

These figures seem to me to suggest certain ocnolusions. Although tariff barriers against Hong Kong in the R.E.C. were premuably increasing over this period in relation to intra- Suropean tariffs, the E.E.C.'s shares of Hong Kong experts rose very substantially. This may reflect/mpid rise in incomes in Europe over this period, which more than outweighed the tra divorsionary of acts of the grachal introduction of the common external tariff. The very substantial difference between ex: to frence and those to Best Ger any and the Netherlands suggests that tariër barriers have been of less inportense to liong Kong's trade than quota restrictions, which have been particularly severe in France. The fall in the U..'s share since 1963 may partly reflect the temporary import charge (the absolute fall in U.. isports in 1965 would suggest that this was a factor), but say

also reflect the more ràpid rise in hong Kang exports to other

markata such as U‚ä‚à, and Sest Germany, It is at any rate sig-

nificant that Hong Kong's most rapidly growing markets over the past few years have been countries where she had to surmount

tariër barriers.

This would sug ast that fros liong Kong'a point of view åt will be more important to have reasonable provisions for access to the bureye`n market than any exemptions from the C.P.T. Obviously ve should not underestimate the depressing effcots that

the application of the C.E.T. could have on Hong Kong's exporta

1

to the U.. the experience of 1965 and the import charge would appear to confirm these fears.

But it appers likely that

Hong Kong dan surmount reasonable tariff berriere if her goods are allowed entry at all.

I en sending the other recipients of this minute a complete

set of the table mich you now have.

Jir

rthur Snelling

śr. Shannon

Mr. Holland

Hr. Gallagher

Lagher

Kr. Carter Er. right

(5. Selwyn)

30th June, 1967.