CONFIDENTIAL
33
The hon. " A. Pakenham
Kr. ilne
Hong Kong – EEC and Textiles
Further to my Minute to Wr. Brind of 18 March, which reported a comment "by F..G. officials" made to an English trade unionist that dong Kong constituted an "obstacle" to british entry into the Community, I now enclose a record of 3.E.C./Hong Kong Cotton Textile Talks, dated 3 February, which amplifies from an independent (and more sophisticated, source the possible significance of the tera.
2. It is clear that concerned as they are with an issue of considerable complexity, the Commission officials have a clear end reasonable idea of the principles they will wish to apply in the cotton and c.a.f. sectors (see paragraphs 7, 13 and 20 of the record As far as other goods are concerned despite pressures in Member States of the Community for restraints, it seems probable that the treni will be toward the adoption of a "fully liberalised common policy" (paragraphs 21-23). one of this justifies the use of the term "obstacle", even though paragraph 2 of a Memorandum dated 17 arch addressed to the Director of Commerce and Industry Hong Kong from Geneva speaks of an ayparently "growing opposition to Hong Kong in industrial circles in the 2.5.C. and refers to "the French view that Hong Kong's position in relation to preferences should be dealt with as part of the U.K. entry negotiations
(the French clearly want to place . .C. in the role of "demandeur" in that regard in order to enhance their own bargaining position". This could of course create difficulties if we hope to avoid detail and technicality in the negotiations but again hardly "an obstacle".
D
3. You will presumably not wish to retain the enclosure for our files; it would therefore be helpful if you could please send it on to r. Vilne (Commodities Department) after perusal.
R.
Enter on HK 6/6 be
༢༠?
COM IDENTIAL
(P.R. Spendlove)
25 Harch. 1970
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