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important to her than even the total of her trade with the enlarged Community. In 1969 as much as 42% of Hong Kong's total domestic exports went to the United States, compared with about 11.5% to the Community and 11.6 to the UK. Despite the US exclusion of textiles and footwear, some 25% of Hong Kong's total exports would still ben.fit from the US scheme if Hong Kong were included; however her exports of such products to the C are only 31% of the total, with roughly the same percentage to the UK. In summary therefore the US market for products on which they will grant preferences is over three times as important for Hong Kong than the market for the same products in the whole of the enlarged Community.
16. Against this background the Hong Kong officials should be invited to discuss with us any possible solution to the EC's problem that will be sufficient to obtain inclusion in the US scheme. In these circumstances, Hong Kong should be brought
to realise that there is little chance of inclusion in the EEC scheme in respect of textiles and footwear, which the US have already excluded and which, in the case of textiles we have also excluded. He would suggest that Hong Kong should consider agreeing readily to the exclusion of these products by the BC on the basis that Hong Kong should receive the best possible treatment on all the other goods in the Community's scheme, 17. The difficulty must however be faced that on those nine or so tariff headings on which there are quantitative restrictions against Hong Kong within the C (all in France) the Six will have great difficulty in agreeing duty free entry to Hong Kong without limitation. Since the exclusion of textiles and
footwear would exclude from the scheme some 70% of Hong Kong's exports to the six we can of course argue strongly with the Community that it is not reasonable to place severe limitations on most of Hong Kong's other competitive exports. Nevertheless we shall be grateful for Hong Kong's views on what treatment they would be prepared to accept on the other sensitive products on which the Six will clearly have
considerable difficulties.
If the principle is accepted
/that
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