D093230
C.F. 323
CONFIDENTIAL
- 11
Community. He recognised that the current arrangements with both Germany and the Benelux countries terminate on 31st December this year and that the French unilateral quotas for Hong Kong havə been notified until 30th September, 1970 (when the current extension of the C.T.A. finishes). He said that, in the Commission's view, the power of individual Member States to negotiate on their own under the C.T.A. will not remain after the end of the transitional period on 31st December, 1969. After that date any further arrangements Member States may make under the C.T.A. will need to be at least approved by the Community's institutions and will probably be required to be negotiated by the E.....C. as a whole. The Commission representative did, however, imply that the Commission would probably not object to the extension of the period of the current arrangements between Hong Kong and Germany and the Benelux for nine months to bring them into line with the C.T.As. But he made it clear that, if the C.T.A. were extended further in time beyond 1st October, 1970 any renewed arrangements with Hong Kong would need to cover the Community as a whole."
29.
At the meetings in question the Department took note of the above views but it did not commit the Hong Kong Government to any acceptance of them in the absence of an official communication from the E.L.C. as a whole. It was pointed out that Hong Kong's reaction to any offer by the .E.C. of an Article 4 arrangement woul depend in the first place on whether, and if so in what form, the C.T.. was further extended after 30th September, 1970 and if the Community as such (as distinct from the individual Member States) became a party to it. Secondly, we would have to consider the case to be made out and the terms offered for any su ch arrangement.
30.
In this connection it should be noted that the Japanese, at their own request, have recently negotiated an article 4 arrange- ment with the ... C. as a whole. As far as can be ascertained the negotiation was conducted within the framework of the E.E.C. model agreement and provided for ovciall levels in the two groups referred to in paragraph 26 above. These overall levels have again been divided between the individual Member States who have been left to negotiate in with the Japanese the details of categorisation and the administration of quotas. This arrangement would thus appear to be very similar in outline to the arrangements concluded earlier by the Community with India and Pakistan and other developing countries; and it would seem likely that the J.4.C. will in due course be seeking something on the same lines from Hong Kong.
31.
They
What is interesting about this particular arrangement with Japan is that some Japanese sources claim. that they have secured export control in all the Six Member States. This has, however, been denied by Dutch sources with whom we have been in contact. say that the details of the administration of the quotas have yet to be negotiated and that the quotas in France, for instance, will be administered on the one half import control, one half export control basis that France has currently with e.g. India and Pakistan as well as Hong Kong. What would appear to be the case, however, is that, in negotiating this arrangement, Japan has managed to secure higher levels than she was previously allowed in the d.4.C. following has been reported to the Department's Brussels Office as
The the agreed levels compared with the current access levels for Hong Kong (i.e. restraint limits plus trade in liberalised items).
/Access
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