CONFIDENTIAL
Paza $
individual membor country quotas, if a quota arrangement was
agreed for any item. This might not immediately amount to a common market in quota-restricted products, but in the long run
it was the intention to create one. He added that the Commission were discussing with India and Pakistan a Community. regime for a number of items including jute and coir matting, on a similar basis to what they envisaged for Hong Kong. As for Japan, the Six were unlikely to liberalise completely without some safeguard clause being retained.
(111) Mr. Goldsmith pointed out that the United
Kingdom imported about twice as much from Hong Kong as the EEC. If the United Kingdom acquiesced the kind of solution indicated, this would advertise to the world that the United Kingdom agreed that Hong Kong was "some special sort of animal". The extension of French restraints on individual products throughout the Community in face of Hong Kong's GATT rights would be an invitation to the U.S.A. and others to follow suit. Mr.Ernst's
only reply was that the Commission was trying to "get things
moving".
:
(iv) On modalities, Mr. Goldsmith asked how the Commission had in mind to determine quota levels. Would total quotas be of the order of double present levels of trade, or what? Mr. Ernst replied that once the principle of a ceiling had been agreed all possibilities could be discussed.
(v) Mr. Goldsmith enquired whether the date of lat January 1970 for the Common Commercial Policy would still stand. Mr. Ernst replied that after that date there would be no individual country negotiations with Hong Kong. He underlined that the question of the status of Hong Kong as a developing country had not yet been established within the Community.
(vi) Mr. Goldsmith asked whether Mr. Ernst now proposed talks with Hong Kong, and when this question was evaded said that the position we had reached was that we had had informal discussions, though without reaching a meeting of minds, and that we for our part were ready to resume the dis- cussions when the Commission wished. Mr. Wellenstein said
/that
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