TNAG-0248-FCO40-284-Effect-of-entry-of-UK-into-EEC-on-exports-from-Hong-Kong-1970 — Page 83

CONFIDENTIAL

46. Under the terms of the decision announced by the

President of the Board of Trade last summer we would replace our present quota restrictions on cotton textiles

There is from Hong Kong with a tariff on 1 January, 1972.

a clear danger that the EEC will say that this policy cannot be implemented after our entry because their common policy on cotton textilos requires the maintenance of

restrictions on imports from Hong Kong throughout the

enlarged Community.

47. All this means that the outlook for Hong Kong is far

from rosy. The best we can do for the time being is

continue to argue in favour of Hong Kong's

inclusion in a generalised scheme, either on

(i)

the same basis as other claimants to beneficiary

status, or on a basis which gives Hong Kong at

least some hope of significant benefit under

those arrangements;

(ii) continue to take the line that it would be

unreasonable of the Six, under the guise of

establishing a common commercial policy, to

extend illegal restraints maintained by France

throughout the Community.

It will also be necessary to look carefully at our textiles

policy and objectives but this is a subject in itself.

Southern Rhodesia

48.

We should put the Six on notice at the appropriate

time in the negotiations that we might wish to raise the

question of Southern Rhodesia when she returned to

constitutional rule.

CONFIDENTIAL

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