TNAG-0046-FCO40-82-Britain-s-entry-into-EEC-effect-on-trade-with-Hong-Kong-1967 — Page 205

CONFIDENTIAL

difficulties Hong Kong did not sell plugs and sockets to the Six and would not ask for special treatment. But they were

geared to supply the British market and Mr. Haddon-Cave

agreed with Mr. Darlington that they were able to undercut

the British product because of the high labour content.

(v) Toys

19. Mr. Haddon-Cave said that Hong Kong would not make a

case for toys; free entry into Britain had been effective,

and they were off the ground.

20.

(vi) Electric motors

A market had been built up from total exports of 3 million HK in 1961 (U.S.A. and United Kingdom 19,000 HK each).

In 1966 HK 600,000 had been sold in E.E.C. and HK$ 900,000

in the United Kingdon.

cut, from 11% to 8%.

There had been a small Kennedy Round

21. Sunming up the morning's discussion, Sir A. Snelling said that the most important points were:

(i) the Hong Kong suggestion that we might try to

(ii)

devise an arrangement to permit Hong Kong to

develop and sell now products. It might be possible

to fall back on the scheme of generalised preferences for 1.d.cs now under discussion, which could

perhaps be supplemented by a limited tariff quota

for new items.

That Hong Kong should not be disqualified from general preferences on "competitive need" criteria. Mr. Haddon-Cave agreed and said that the loss of commercial preferences would not be critical if generalised preferences were available: Hong Kong was prepared to try other markets such as the U.S.A. but they still needed Britain as a substitute "hone market".

CONFIDENTIAL