TNAG-0250-FCO40-286-Discussions-on-EEC-negotiations-between-officials-of-Hong-Ko-1970 — Page 116

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between the Japanese and the US.

14. Apart from the damage to liberal trading policies which

would result from the implementation of the Trade Bill or the

growth of a network of voluntary restraint arrangements for

non-cottors, there is a risk that if the US restricts access to

its market - particularly if this involves a cut back in the

present level of trade quantities of Asian produced non-cotton

textiles would be diverted to Europe. ritain has

મ

therefore joined with the Six in suggesting that the whole

textile problem should be the subject of a special study by the

GATT, in an attempt to work out longer-term solutions.

Hong Kong and E.3.C.

15. Hong Kong is concerned about the future of its trade in

textiles with EEC countries now that the community is in process

of formulating a common commercial policy. The fear is that

members of the Six who follow liberal trade policies (like

Germany) may be compelled to adjust their policies to meet the

restrictionist attitudes of other members (e.g. France). The

Six, apart from France, do not impose restrictions on non-cotton

textiles and only if a major exporter to the United States were

to concede restraint in this field does it seen likely that the

position would change.

16. On cotton textiles, Hong Kong has much more reason to fear

the effect on its position of our entry into the Common Market

than it has of our introduction of a tariff.

The C would

almost certainly be unwilling to allow Britain to import

unlimited quantities of low cost cloth for processing and free

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