TNAG-0250-FCO40-286-Discussions-on-EEC-negotiations-between-officials-of-Hong-Ko-1970 — Page 33

NOTHING TO BE WRITTEN IN THIS MARGIN

adapt

to the new policy to conform to the

C.C.P. He thought, however, that there was

no reason to suppose that cotton quotas would

continue indefinitely and pointed out that

the U.K. had been ready to see the C.T.A.

phased out. The circumstances laid down by

the previous President of the Board of Trade

for the re-imposition of quotas were very

limited in that there would be no return to

comprehensive quotas, An upsurge of imports

of garments from Hong Kong would not

necessarily lead to the re-imposition of

quotas,

even on a selective basis.

19. Sir J. Cowperthwaite replied that the

U.K. would not be able to avoid quotas on

joining the Community and, therefore, the

philosophy underlying the tariff policy would

be undermined and logically textiles should

be treated on the same basis as other products

in the imposition of the C.E. T. Mr. Carey

argued that Lancashire expected tariff

protection only and had planned its investment

programmes accordingly. To suggest that quota

protection would also be enjoyed would reduce

to fail

the pressure for change, while

to impose

the tariff in one step would lead to accusa-

tions that the industry had been misled.

20.

SA

Sir J. Cowperthwaite thought that

Mr. Carey was ignoring the stimulus provided

by the elimination of internal tariffs within

the enlarged E.E.C. and reiterated that the

U. K. 's decision to apply again for entry

was taken after the new cotton textile tariff

policy had been announced.

11

CONFIDENTIAL