TNAG-0139-FCO40-175-Effect-of-EEC-common-commercial-policy-on-Hong-Kong-exports-1969 — Page 16

MAIN BRIEF (DEFENSIVE)

1.

The President of the Board of Trade made a statement (Annex B) on 22 July of the Government's decisions on the recommendations

made in the report of the Textile Council which was published in March.

2. Of main concern to Britain's overseas suppliers was the decision to replace, with effect from 1 January 1972, the present system of control by quotas by a tariff on imports from the Commonwealth Preference Area. The necessary discussions with Commonwealth countries having rights to duty-free entry into the U.K. market will be initiated as soon as possible. Meanwhile, the textile industries in Commonwealth countries have nearly 21 years in which to prepare for the new situation.

3. Our posts in these countries have been briefed on the following points which could be used also in discussion with Commonwealth Finance Ministers:

(a)

(b)

We have had fully in mind the importance of textile exports to this country for some of our Commonwealth trading partners, particularly among the developing countries. The tariff proposal will be fully discussed with the countries which enjoy contractual rights to duty-free entry and we shall naturally be prepared to listen to the views of other Commonwealth countries and

territories. The present quota arrangements expire at the end of 1970 and we shall seek the agreement of the Contracting Parties to their extension for a further

year.

We expect the replacement of quotas by a tariff to reduce the total of our imports of cotton textiles.

But we

/would

CONFIDENTIAL