Mr. J. A. Robinson, E.I.D.
Robinson, E.
Reference....
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below.
Hong Kong and E.E.C. Common Commercial
Policy
Please see Mr. Carter's Minute of 1 October
2. This department is involved with the GATT aspects of what the C.C.P. seems likely to do to Hong Kong. Prima facie, any extension of q.r's by the Six (q.r's at present operated vis-à-vis Hong Kong by France alone)would be contrary to GATT and we should say so. The fact that M. Ernst has mentioned Article XIX of GATT may be a complicating factor, but need not inhibit us from exercising our rights under Article XI.
3. Our objective might not necessarily be the optimum referred to in 5(ii) of Mr. Carter's Minute it would, for example, surely be of some help to Hong Kong if representations by the U.K. led to the E.E.C. imposing a special procedure for a minimum number of imports from the Colony. Mr. Carter is right to draw attention to the possible complication if Hong Kong is privately flirting with the idea of voluntary export controls, but the Board of Trade's line on Hong Kong's voluntary export controls in the field of man-made fibres was, I believe, dictated partly by our decision to revert to a tariff in place of the quota system on cotton textiles. This is a matter for the Board of Trade to be consulted on.
4. From this department's point of view, I think that we would support Mr. Carter's conclusion in para. 5(iii) - "masterly inactivity" is surely not enough and it might well be too late if we delayed saying anything until faced with a fait accompli. Could we not consider representations in E.E.C. capitals as well as in Brussels (E.E.C)? But this is primarily an E.I.D. matter.
5. We would certainly support action to take this matter forward, perhaps with the Board of Trade in the first instance, if this does not create any difficulties for E.I.D. in the wider E.E.C-U.K. context.
AuBalter
(R. G. BRITTEN) Trade Policy Department 3 October, 1969
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