TNAG-0175-FCO40-211-Visit-to-UK-by-David-Jordan--Deputy-Director-of-Department-o-1969 — Page 12

that the community were finding it difficult to reach

agreement on common commercial policy and that bilat-

(? E.E.C) eral discussions between individual countries and the

Japanese had been suggested. Mr. Ernst had, when he

visited Hong Kong, suggested that agreement on restri-

ctions to be applied to Hong Kong trade might be justi-

fied by a loose interpretation of Article 19 of the

GATT. However, Hong Kong had rebuffed this suggestion.

Mr. Jones said that in his experience, however, the

fact that the community was aiming at a common commer-

cial policy did not always prevent individual members

of the community preventing the import of commodities

which they wished to keep out but which were allowed

in freely by other members. This happened whether or

not Article 115 was invoked by the territory concerned.

2. In the course of discussion it was pointed out

that the Japanese maintained a wide range of restric-

tions over imports from the EEC. Their general policy

appeared to be like our own, to move gradually towards

a policy of liberalisation. Thus in the formulation

of a common liberal commercial policy the EEC, when

dealing with Japan, would find that Japan would be in

a position to bargain with the removal of her own

restraints.

Hong Kong having no such restraints her-

self over imports from the community was in a different

position and it was agreed to ask Mr. Ernst how and

when EEC proposed to deal with Japan.

3. Mr. Goldsmith said that to avoid Mr. Ernst being

put into a position where he was able to say after the

meeting that this had been a formal occasion of con-

sultation with the Hong Kong authorities the members

present at the meeting would be kept to a minimum in

order to achieve informality.

/ Textiles

* See

MWE 5/306/1

atid

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