TNAG-0250-FCO40-286-Discussions-on-EEC-negotiations-between-officials-of-Hong-Ko-1970 — Page 188

Registry No.

SECURITY CLASSIFICATION

Top Secret.

Secret.

Confidential.

Restricted. Unclassified.

PRIVACY MARKING

In Confidence

DRAFT

Brief

To:

Type 1 +

From

SLOMAN

Telephone No. & Ext.

Department Commodities

30

for the extension of LTA-type restrictions not only

throughout the whole field of textiles but to other

commodities. Extension of LTA-type restrictions would

be contrary to British trading interests, and the

United Kingdom, as mentioned in paragraph 3 above, will

replace quantitàtive restrictions under the LTA from

January 1972 by simple tariff controls with no limit on

volumes.

Hong Kong and E.E.C.

7. Hong Kong is concerned about the future of its

trade in textiles with E.E.C. 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 seem likely that the position would chan

change. On cotton textiles indications are that each

Member State will continue to operate individual quotas

for cotton textiles, within an overall E.E.C. deiling,

at least until the end of 1972.

8. Hong Kong have much more reason to fear the

effect on their position of our entry into the

Common Market.

The E.E.C. would almost certainly be

CONFIDENTTAL,

(134392) Dd. 737115 750m 4/70 Hw.

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