TNAG-0046-FCO40-82-Britain-s-entry-into-EEC-effect-on-trade-with-Hong-Kong-1967 — Page 194

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Hong Kong would have rights and obligations under the G.A.T.T.

towards a Community enlarged by the addition of Britain, It

was agreed to return to this at a later session.

Cotton Textiles

13. Mr. Haddon-Cave said that Hong Kong was not worried about

having to face the c.e.t. in Britain. This should not affect

the volume of sales, though it might affect their profitability.

But Hong Kong was concerned about the possibility of stricter

quantitative limitations on her exports of cotton textiles to

Britain. The Community was now developing a common policy for

the import of cotton textiles from low-cost sources, By 1970

Hong Kong expected to have a single bilateral agreement with the Community under the G.A.T.T. Long-Term Arrangement instead

of different ones with each of the Member States. The more

liberal Member States of the Community were already under

pressure to become more restrictive. Britain, which was more

liberal than any of the Six, would probably have to move in the

same direction. He recognised that this was not an issue which

could be raised in pre-entry negotiations since, in the absence of

a common Community policy, there was nothing to negotiate about. Possible Arrangements for Hong Kong

Association under Part IV of the Rome Treaty

14. Sir A. Snelling said that when he was in Hong Kong earlier

in the year he had formed the impression that Hong Kong would

want Britain to seek Association for her, if only for public

relations purposes. Britain saw little to be gained by this.

Mr. Haddon-Cave said that support for Association was prevalent

among the British mercantile houses rather than among the Chinese business community. There were no new arguments in favour of Assoication beyond those put forward and rejected in 1962. He did not think that either the Hong Kong Government

or the non-official trading associations would wish to advocate

/a

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