TNAG-0046-FCO40-82-Britain-s-entry-into-EEC-effect-on-trade-with-Hong-Kong-1967 — Page 133

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(a) Hong Kong wishes to see her present access

rights to the markets of the U.K. and the Six

unimpaired by British entry into the Community.

(b) Hong Kong officials said that, while the

application of the common external tariff to

her exports to the U.K. might not in itself

affect the level of trade, it would be likely

to depress wages and/or profit margins.

We

agreed that the level of exports was not

likely to be affected; but suggested that the

pattern of trade might. Hong Kong would prob-

ably upgrade the qualities of her exports, and

specialise in items where she had a competitive

advantage. We also suggested that Hong Kong

officials should prepare a note in advance of

the next round of consultations, showing how

they think that the common external tariff will

in fact bear on different categories of textile

exports to the U.K.

(c) Hong Kong officials suggested that the Six were

unlikely to consider isolation of the U.K.

market for textiles. As the present policies

of the Six were far more restrictive than those

of Britain, they thought that we were likely to

come under pressure to reduce our imports from

Hong Kong; Germany was already yielding to

pressure to extend the range of Hong Kong

textiles subject to import licensing.

present, within the Community, the re-export

of imported textiles was limited by various

restrictive arrangements; but the European

Commission were determined to achieve a common

commercial policy by 1970. If free circulation

At

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