TNAG-0046-FCO40-82-Britain-s-entry-into-EEC-effect-on-trade-with-Hong-Kong-1967 — Page 138

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cutlery.

The development of Hong Kong exports of electric

motors was shown to have begun in other markets, and to have

spread to the U.K. market only at a later stage.

18. It could also be put to the Hong Kong Delegation, as was

done at the last round of talks, that they could hope in due

course to benefit from the proposals on which both 0.E.C.D.

and U.N.C.T.A.D. have been working for the establishment of a

system of generalised preferences for less developed countries.

This might provide Hong Kong with just the same kind of bene-

fits for new products as the suggested continuation of limited

duty-free access to the U.K. market is meant to give. We

ought to know much more about this before the second round of

consultations with Hong Kong. A draft report by the O.E.C.D.

Special Group is to be circulated by 8 September;

discussed

at a meeting of Alternates on 18 September; and finalised by

the Group on 26 and 27 September.

19. Should the Hong Kong Delegation press the matter further,

we could say that, if there were to be any possibility of the

Six entertaining a proposal for preferential access on a

restricted basis, it would certainly have to be limited as

follows.

(i) It would have to apply to a specified range

of commodities, which Hong Kong does not now

export in significant quantities.

(ii) The period for "market research" would have

to be limited.

(iii) The measure of reduction of the common exter-

nal tariff could not be too great.

(iv) Duty quotas or other limitations on quantity

could have to be provided for.

Even if the proposal were limited in these ways we would expect

the Six to see serious difficulties about accepting it. They

would be likely to argue that it was unnecessary, basing

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/themselves