CONFIDENTIAL
the tariff, up to the point where tariff levels themselves
materially restricted access. But the imposition by Britain of
the c.e.t. on imports from Hong Kong was still a serious matter.
It could make a considerable difference in some parts of the
trade, particularly since the c.e.t. had not been much reduced
in the Kennedy Round on items of interest to Hong Kong.
Mr. Gildea said that first thoughts at official level were that
it would be best to let the Six make the first move on textiles.
In a sense, the Commission had already done so in their Report.
To ask for special arrangements for Hong Kong's textiles would
probably do more harm than good. In answer to a question he
said that there had been no indication since July of any further
developments in the E.E.C.'s common commercial policy on
textiles.
Hong Kong's rights under the G.A.T.T.
7. Mr. Audland recalled that in the last round of talks the
Hong Kong Delegation had asked what would happen to Hong Kong's
G.A.T.T. rights if the member states of an enlarged Community
withdrew from the G.A.T.T. as individual countries and rejoined
as a single body. We had said that the Six showed no sign of
considering this necessary and that it was most unlikely that
such a thing would happen within any likely timescale for our
If, at some future date after British entry, the negotiations.
enlarged Community thought it necessary to take this step,
Britain would no doubt ensure that satisfactory arrangements were
made for Hong Kong. After taking legal advice on the point we
still adhered to this view. The question had also been raised
of Britain giving Hong Kong autonomy in the conduct of her
external commercial relations. We had found that there would
be no legal objection to this under the G.A.T.T., but agreed
with the Hong Kong Delegation that the political objections to
this course were decisive.
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