TNAG-0249-FCO40-285-Effect-of-entry-of-UK-into-EEC-on-exports-from-Hong-Kong-1970 — Page 33

NOTHING TO BE WRITTEN IN THIS MARGIN

W(B)L 51-7406

seeking Hong Kong's inclusion in the UNCTAD

Scheme for Generalised Preferences for

developing countries.

#.

We consider it equally important that,

as the Community before or after enlargement,

}

formulates its commercial policy towards

Hong Kong, this policy should be as liberal

Once we

in its provisions as possible.

are inside the Community, of course, our

task in protecting Hong Kong's interests

will be to some extent eased..

J.

Addressing myself briefly to the

possible courses of action you mentioned

in your letter I should like to begin by

pointing out that the reduction of

Commonwealth preferences privileges will

have to take place over whatever transitional

period we negotiate for entry into the

Communities. At present we have asked

for a 3-year period for the reduction of

our tariffs vis-a-vis the Community, and

the aplication of the common external

tariff to imports from third countries.

The actual period upon which we and the

Community will eventually settle is still

to be negotiated. The British decision

to impose tariffs on Commonwealth cotton

textiles from 1 January, 1972, was taken

for reasons unconnected with our application

for EBC membership, reasons which still

apply. The question of reducing tariffs

into the enlarged Communities is of course

a subject which can be discussed with the

Hong Kong Government after enlargement

proceedings had concluded, It would not

be prudent for me to speculate on what

would ha

en after enlargement in this