TNAG-0047-FCO40-83-Britain-s-entry-into-EEC-effect-on-trade-with-Hong-Kong-1967 — Page 19

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Third Countries' it is briefly stated that 'a special problem

arises with respect to imports from Hong Kong'.

The context

is no real help in detecting just what the Commission are

getting at, but it would be prudent to assume that they mean

'a problem for the Community' and not 'a problem for

Hong Kong'.

9. The Report recommends that the transitional periods

should be the same for industry and for agriculture, and goes

on to say that 'the best way of maintaining a certain degree

of unity of the internal market in the wider Community would

be for the starting date, the duration and the rhythm of

development of the transitional period to be the same for all

exceptional arrangements

to be kept the acceding countries and for sø few cystems as possible të

to

a

minimum.

be-exceptions to this'. It does not, therefore, look as

if the Commission will be favourably disposed towards the

revival of the concept of 'soft decalage

10.

The section on the abolition of impediments to intra-

Community trade contains the following passages:-

'The elimination of impediments to trade, even when

done progressively, could lead to certain difficulties

in 'sensitive sectors' which were dealt with separately

under the Kennedy negotiations.........The very wide

divergences 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:-

CONFIDENTIAL

/'Furthermore