TNAG-0249-FCO40-285-Effect-of-entry-of-UK-into-EEC-on-exports-from-Hong-Kong-1970 — Page 51

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Whe

perfundenda tend to the view that above all it is important

that Hong Kong should not be discriminated

against in European markets to the advantage

of her trading rivals. Because of this we hom

been

Why don

consider it!tant that Hong Kong should be

included within the beneficiaries under the

UNCTAD Scheme for Generalised Preferences for

developing countries, and have been active on

her behalf in this field.

Whnit

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 in its

provisions as possible. Once we are inside

the Community, of course, our task in

protecting Hong Kong's interests will be

casier

[greatly helped)

Nevertheless, the fact that

we are still only on the fringe has certainly

not led us to neglect Hong Kong.

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 what- ever transitional period we negotiate for entry into the Communitie. At present we

have asked for a 3-year period for the reduction

of our tariffs vis-a-vis the Community and the

application of the common external tariff to

imports from third countries. The actual

period upon which we and the Community will

eventually settle is not something which I can

predict at this point.

The decision to

impose tariffa on Commonwealth textiles from

1 January, 1972, was taken for reasons

unconnected with our application for EEC

/membership

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