TNAG-0046-FCO40-82-Britain-s-entry-into-EEC-effect-on-trade-with-Hong-Kong-1967 — Page 45

CONFIDENTIAL

(a)

to pressure to extend the range of Hong Kong textiles

subject to import licensing. At present, within the

Community, the re-export of imported textiles was

limited by various restrictive arrangements;

but the

European Commission were determined to achieve a common

commercial policy by 1970. If free circulation 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 question of safeguards

for their own markets if they wished. If they dia, we

should be in a rather stronger negotiating position.

Any restriction on exports or re-exports from the

U.K. to the Six would be contradictory to the concept

of a Common Market;

and any reduction of imports from

Hong Kong into the enlarged Community would be contrary

to the intention of Article XXIV.5(a) of the GATT and of the Long

Term Arrangement.

20. The question of our imports of cotton textiles is of

course a very wide one, affecting many countries besides

Hong Kong, and notably India and Pakistan.

The British

textile 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.

CONFIDENTIAL

/21. The

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