TNAG-0249-FCO40-285-Effect-of-entry-of-UK-into-EEC-on-exports-from-Hong-Kong-1970 — Page 143

CONFIDENTIAL

excluding Hong Kong's main competitors.

These would

clearly be Taiwan and South Korea. We could say that

following our entry into the EEC we would of course have

to adopt a common scheme with the other members but that

we would expect the EEC to come some way towards meeting

our position in return for our acceptance of duty free

imports from Taiwan and South Korea.

24. If both the EEC and the UK were then including Hong Kong

within the scheme, the US and perhaps even Japan would

find it more difficult to exclude her'.

C.

The Common Commerciel Folicy

25. It is in this field above all where we must do our utmost

to ensure fair treatment for Hong Kong. It seems likely

that most of the decisions to establish Community quotas

for Hong Kong goods will have been agreed before our

negotiations are completed, and we would then have to

impose the same restrictions ourselves. Therefore this

problem is likely to give rise to a major subject for

negotiations and diplomatic representations during the

next two years.

which

26. In the course of these representations, w might well go

on after the conclusion of negotiations to the period when

we are members of EEC., we should draw attention to the

GATT aspects of extending restrictions as a result of the

Common Commercial policy. Besides being subject to the

general GATT ban on quantitative restrictions, such an

extension would be contrary to the specific provision of

GATT that the formation of a customs union or free-trade

/area