TNAG-0250-FCO40-286-Discussions-on-EEC-negotiations-between-officials-of-Hong-Ko-1970 — Page 115

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it has at present on cottons by means of a Delegation of

Authority from H.M.G. to the Government of Hong Kong, are under

consideration.

Non-Cotton Textiles (Man-made Fibres and Wool)

11. Apart from restrictions inconsistent with the rules of the

GATT which France maintains on Hong Kong's non-cotton textiles,

both Britain and the EEC have only tariff protection against

nan-made fibre goods from Hong Kong. On wool goods, Hong Kong

faces a tariff in the EEC, but enjoys duty-free entry into

Britain.

12. All major developed countries other than the United States

restrict imports of some non-cotton textiles from Japan. The

United States has for sone time been seeking to restrict imports

of non-cotton goods from Japan, Hong Kong, Korea and Taiwan

either by means of voluntary restraint arrangements, or by

quotas inposed under the Trade Bill now before Congress.

and the ECC on the other hand and working towards the

liberalisation of trade in Japanese non-cotton textiles, subject

are

to reciprocal concessions by the Japanese.

Britain

13. The Japanese have so far failed to reach agreement with the

US, largely because the restrictions sought by the Americans

have been unacceptable to Japanese industry.

A further round

of talks is, however, now taking place, which may end in

agreement. Hong Kong would prefer to negotiate a voluntary

agreement rather than have quotas imposed under the Trade Bill.

We have however taken the line that Hong Kong must not negotiate

with the Americans until we know the outcome of the wrangle

7.

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