TNAG-0250-FCO40-286-Discussions-on-EEC-negotiations-between-officials-of-Hong-Ko-1970 — Page 31

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CONFIDENTIAL

U.K. TEXTILE POLICY

14. The Governor then raised the question

of the application of the new tariff on

imports of Commonwealth cotton textiles in the

U.K. He said that, if implemented, this would

face Hong Kong with a tariff with no decalage

as from the beginning of 1971. If the U. K.

joined the E.E.C. shortly afterwards, there would then be both tariffs and quotas. He

proposed that the decision should be recon-

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sidered and perhaps be put off until 1973 when?

it should be known whether the U.K. was !

definitely entering the E. E. C.

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15. Mr. Carey confirmed that the present Government had reaffirmed the previous Government's policy and had also accepted the

implementation date of 1st January, 1972.

16. Sir J. Cowperthwaite said that, despite

assurances to the contrary, there had been no chance of consultations before the policy decisions had been made in 1969.

But it

had been

agreed that Hong Kong's reactions should be

should made known to the U.K. in due course, quite apart from the complication of E. E. C. enlarge-

ment which had since arisen. He said that

Hong Kong had always believed that ultimately-inspective of Lancashire would be protected by both a tariff

JEEC entry-

and a quota system; nor certainly a

on top of the tariff

quota system/was inevitable under the C.C.P.

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should Britain join the Community. The point now was that, in the context of the present negotiations for British entry into the E.E.C., a tariff would be inevitable anyway and a decalage arrangement should apply to cotton textiles as to other products. Notice of

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