TNAG-0250-FCO40-286-Discussions-on-EEC-negotiations-between-officials-of-Hong-Ko-1970 — Page 127

CONFIDENTIAL

They did not consider that association was appropriate for a dependent territory with woll developed manufacturing industries. The British proposal on the table at the end of the negotiations contained the following elements:

(a) special arrangements for cotton textiles;

(b) the same decalage (gradual timetable for application

of the tariff) for other manufactured goods as

arranged for the Asian Commonwealth;

(c) provision for periodic reviews to isolate and

examine problems in Hong Kong's trade relations

with the enlarged Community arising out of Britain's

entry.

◊

A further British proposal that, if these reviews showed that damage was being caused to Hong Kong trade as a consequence of British entry, remedial action should be taken was, at the time of the breakdown, subject to a counter-proposal by the

Six that remedial action should also be taken if any Hong Kong exports were shown to be causing market disruption in the Community.

1967 Talks with Hong Kong

40 During the consultation sessions in 1967, the following theoretical possibilities for dealing with Hong Kong's problems

were considered:

(a) Yaounde type association;

(b) Horocco type Protocol; (a protocol to the Treaty

under which a particular country continued to enjoy

preferential access to one member country of the Community);

(c) Hong Kong exports to the UK to be covered by any

general arrangements which might be negotiated with the Six for the gradual application of the CET; (d) Hong Kong's exports to the UK to be covered by

special arrangements for Hong Kong, to be negotiated

with the Six, for a more favourable application of the CT than the rate generally applied;

(e) acceptance of the application of the CT to Hong Kong exports to the UK even if this had to be achieved in a single step;

CONFIDENTIAL

/(f)