W(B)L 51-7406
NOTHING TO BE WRITTEN IN THIS MARGIN
expect that youn would agree
the GATT
indicated in his letter the pressures that
might lead to early progress on this aspect of
Community policy. Furthermore we think that
it would be preferable, both in Hong Kong's
interests and our own, to make any representa-
tions to the Community before negotiations for
our own entry commence. Inevitably these
negotiations will be complicated to some
extent by the need for adjustments in favour
of our dependent territories, but if we can
get some of these adjustments out of the way
first that might be to the advantage of all
concerned.
5.
Representations should, we think, be made
to the Commission, not to the Community member
states. This is after all a question of the
Community's common commercial policy. A more
scattered approach to individual members would
complicate matters unnecessarily, without
making a concerted favourable reaction more
likely.
6.
As to the content of our representations, expect that you would agree we are in no doubt that the extended quota
restrictions introduced by these Community The GATT
measures infringe Hong Kong's GATT rights, and
we feel that any representations must be centred
on this point. We are aware, however, that
in discussions in Hong Kong in June Ernst
alluded to the possibility that the Community
might seek to justify their action under an
XIX interpretation of Article of the GATT and,
according to the record (paragraph 4)
answered Derek Jones' expression of disbelief
that this was possible by a statement to the
effect that "it was legalistic thinking that
did not pay sufficient regard to the realities
/ involved
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