TNAG-0135-FCO40-171-Tariff-preferences-for-developing-countries-1969 — Page 128

CONFIDENTIAL

2 -

Common Conn kit kå ban ford a

ban" free vendation

(a)

in the first paragraph of my paper the 5% would

also apply to future trade;

(b) in all Member States the quota ceiling would be

checked only for products in the Hong Kong sensitive

(c)

(a)

(e)

list (which he admitted covered approximately

$100 million out of $109 million worth of H.K. exports to the Community in 1967);

but the Germans had indicated that they would probably not check the quotas on a large number of so called sensitive products as well. Duty free imports to Germany could therefore probably rise above the ceilings. The scnsitive product ceilings would all be checked in France and Italy, and probably in Belgium also. Holland was uncertain; the consequence of (b) was that in non-sensitive

products and new products there would be no effective ceiling on Hong Kong, as well as on other developing countries unless any of these items were later brought into the sensitivo list at the request of a

Member State:

Tran and others in the Commission had tried to get more liberal proposals through for Hong Kong but had been turned down by the Menbur States. What Momber

States seemed to be mainly afraid of was not so much damage to Community industry as complaints from the 77 that their quotas were going to Hong Kong; (f) Tran believed that, if the U.K. pressed, the 5%

quota coiling could probably be raised in negotiations to 10% or even 15% (in this he was probably cxpressing his incurable optimism);

(6) cotton textiles would almost certainly now be

cxcluded from the ELC scheme and perhaps some or all non-cotton textiles as well (I said that from Hong Kong's

CONFIDENTIAL