TNAG-0250-FCO40-286-Discussions-on-EEC-negotiations-between-officials-of-Hong-Ko-1970 — Page 86

14.

The Governor thor 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 1972. 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-

sidered and perhaps Le put off until 1973 when

it should be known whether the U.K. Was

definitely entering the E. E. C.

15. Mr. Carey confirmed that the present

overnment 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

had de decisions had been made in 1969. But it pas

agreed that Hong Kong's reactions shouli ba

made known to the U.A. in due course, quite

apart from the complication of E.E.C. enlarge-

ment which had since arisen. He said that

(-inrespective of EEC intr- Hong Kong had always believed that ultimately

Lancashire would be protected by both a tariff

and a quota system ind vinowy Laertainly, & systemjubavnowy a

on top of a tari}{

quota system was inevitable under the C.C.2.

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

9.

CONFIDENTIAL

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