TNAG-0046-FCO40-82-Britain-s-entry-into-EEC-effect-on-trade-with-Hong-Kong-1967 — Page 9

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between the commercial and industrial policy of Great

Britain and the Community in a sector such as the textile

industry could also raise delicate problems for the

Community's industry, which as a result of the agreements

recently concluded in Geneva is already required to leave an

increasing part of the market to developing countries.'

The following passage in the section on the application of the

common customs tariff may also be relevant:

'Furthermore it would be appropriate, when the exact scope

is being decided of the applicants' acceptance of the

common customs tariff, to examine the case of certain

products or sectors of particular importance where

acceptance of the customs duty can only have full

significance if it also implies acceptance of a certain

number of fundamental decisions of industrial or commercial

policy.'

All that can be inferred with reasonable certainty from this is

that the Commission seem to think that the Community will need to

seek special arrangements in their own favour on textiles.

6. The Commission's Report will be considered by the Council

of Ministers of the Six at their meeting on 23 and 24 October.

The outcome of this meeting will be known during the course of the

talks with Hong Kong.

Hong Kong Industrial Inquiry

7.

Since the last round of talks, the Commerce and Industry

Department in Hong Kong have completed a statistical exercise, the

ん items for which Hong Kong is particularly dependent on the British

market. They have circulated their results to commercial and

industrial associations in Hong Kong and invited their assessment,

for each group of products, of the likely impact of British entry

into E.E.C. It is therefore possible that in the second round of

consultations the Hong Kong delegation will be able to confront us

with a good deal of new factual material on particular products.

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