TNAG-0046-FCO40-82-Britain-s-entry-into-EEC-effect-on-trade-with-Hong-Kong-1967 — Page 221

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clause of the LTA if the level of imports from any country

-

exceeded notional levels these levels would be fixed roughly

at the quantity of imports accepted by them under the free

trade arrangements.

The E.E.C. Commission had staked its

authority on evolving a Common Commercial Policy by 1970 with everything this would imply. If, however, free circulation of

imported goods between member countries was to be permitted,

it was to be expected that categorisation would be tighter and

the scope of bilaterals would be gradually extended to new

products not at present subject to restraint. At present, however, various restrictions existed inhibiting the re-export

of imported textiles between member States.

22. In the light of the last statement it was suggested by the

UK that the E.E.C. might allow the UK to accept the same

quantities of imports as at present, subject to a restriction on

their re-export.

23. Mr. Haddon-Cave felt, however, that such a derogation from

Community policy would not be acceptable to the Six and that

the UK might be compelled to restrict her intake in response to

Community pressure.

24. Sir A. Snelling said that no guarantee could be given on the extent of Hong Kong's access rights to the UK market after 1970, since our present obligations would have by then expired

and it was difficult at present to see the basis on which new

ones would be contracted. As regards the negotiations it

looked as though one possible line on Hong Kong might be to say

nothing which would imply accepting the application of the

c.e.t. and leave it to the Six to revise the question of

safeguards for their own markets if they wished. If we were

then faced by the Six with an alternative of reducing imports

from Hong Kong or accepting a ban on their re-export to the E.E.C., we might justifiably object that this was discrimin-

atory treatment foreign to the spirit of the Community.

was indeed some evidence to support the view that under the

There

/Treaty

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