TNAG-0046-FCO40-82-Britain-s-entry-into-EEC-effect-on-trade-with-Hong-Kong-1967 — Page 134

CONFIDENTIAL

(a)

of imported textiles were to be permitted,

categorisation would have to be tighter and

the scope of bilateral agreements would have

to be gradually extended to new products not

yet subject to restraint.

We suggested that one possible line with the

Six in the negotiations, which appeared to

accord with the tentative thinking of Hong

Kong officials, would be to say nothing about

textiles; this would imply accepting the

application of the common external tariff, and

would leave it for the Six to raise the ques-

tion of safeguards for their own markets if

they wished. If they did, we should be in a

fairly strong negotiating position, since we

should be able to argue that either the

reduction of our own imports from Hong Kong,

or the acceptance of a ban on their re-export

to other member countries, would be discrimina-

tory treatment foreign to the spirit of the

Community.

90 The question of our imports of cottong textiles is of

course a very wide one, affecting many countries besides Hong

Kong, and notably India and Pakistan. The British textiles

industry is already carrying out a survey into the productivity

of its various sectors, which will be taken into account by the

Board of Trade in consideration of our textiles policy for the

period after the current arrangements come to an end, in 1970.

The industry have not been encouraged to look for increased

protection.

10. The question of tariffs is of course bound to arise in the

negotiations, since the Six will certainly want to know how we

propose to apply the common external tariff to our trade with

/Hong

CONFIDENTIAL