TNAG-0047-FCO40-83-Britain-s-entry-into-EEC-effect-on-trade-with-Hong-Kong-1967 — Page 16

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Precious Metals and Jewellery

£2.4 million

(12.6%) (0.6%)

Manufactures of

Metal

£ 0.97 million

(8.9%) (0.2%)

Fixtures and Fittings

£0.75 million

(10.7%) (0.2%)

3. A table setting out Hong Kong's principal exports (including re-exports) in recent years to Britain and to the E.E.C., the margin of preference which they enjoy in the British market, and the E.E.C. tariff/levy treatment of such

exports is at Annex..

The Effect of British Entry into the Community

4. The items listed in paragraph 2 would be directly

affected by our entry into the Community, either by loss of

preference or by the application of the common external

tariff. However, as we have seen above, it is worth

recalling that, while Britain's relative importance as a

market for Hong Kong's exports has tended to remain steady

or to decline slightly in recent years, that of the Six has

been growing rapidly despite the dismantling of intra-Community tariffs and increased discrimination against Hong Kong and

other third countries.

Moreover, the Community has in the

Kennedy Round agreed to make substantial reductions in the

c.e.t. many of them on products of interest to Hong Kong.

In any case it seems that Hong Kong can overcome normal

tariffs. What restricts its exports is quota restrictions.

Britain, in joining the E.E.C., would not be required to

impose quota restrictions, as long as these are matters for

individual Governments.

Hong Kong in the 1961/63 Negotiations

5. No provisional agreement had been reached before the

negotiations ended. The Six rejected the original British

proposal that Hong Kong should be associated with the enlarged

Community under Part IV of the Treaty of Rome.

They did not

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/consider