TNAG-0250-FCO40-286-Discussions-on-EEC-negotiations-between-officials-of-Hong-Ko-1970 — Page 193

4c

-2-

at any rate at this attempt.

One of the main purposes of

We cannot accept this suggestion.

the tariff decision is to put pressure on our industry to take

steps, within a limited space of time, to make radical

improvements in its efficiency. Lancashire was told 15 months

ago that the changeover from quotas to tariffs would take place

at the end of 1971. The new Government, on taking office,

had re-examined the policy, taking into account all the

relevant considerations such as the possible enlargement of the

Community: and had let the industry know that both the decision

and the date for its implementation still stood. We are not

prepared to re-introduce the element of uncertaintý which has

overhung our producers for so long.

42

A

42

EEC RESTRICTIONS ON COTTON TEXTILE IMPORTS

Cotton

The EEC restricts imports of cloth and made-ups (but not yarn)

from Hong Kong, India, Pakistan, Taiwan, South Korea and the

UAR. The Commission has now taken over responsibility for the

negotiation of these quotas; but within the overall EEC quota

is a break down into quotas for individual EEC countries.

Free circulation between member countries of the low cost

textiles is not permitted.

In the context of the generalised preferences exercise, the

EEC has offered (see the brief on the UNCTAD offer) to admit

imports of cotton textiles duty free, up to recent levels of

trade, from developing countries whose trade is already limited

under LTA quotas. This offer is however unlikely to apply

to Hong Kong.