TNAG-0281-FCO40-317-Visit-of-the-Chancellor-of-the-Duchy-of-Lancaster-to-Hong-Ko-1970 — Page 113

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your exports now go to Britain, and the

proportion of your exports to the present EEC is scarcely less (9.4%). As for Britain, our exports to Western Europe, our fastest growing market, are now twice as great as our exports to the Commonwealth,

and our exports to the EEC increased 2 times

between 1958 and 1968.

6. We see no great difficulty over the process of removing tariffs between the UK and the Community over an appropriate transitional period. Together with this process, we should have to adopt the CET. But the difference between the general level of our present tariff and the CET, after the Kennedy Round reductions, is not in general so great as to raise insuperable problems, and we should, of course, seek a transitional

period for adoption of the CET.

10. It would not be right for me to comment on reports of statements by other Commonwealth

Ministers. But I can say that we maintain

continuous and close contacts with Commonwealt

Governments about our application, and you will know that I am visiting Australia and

New Zealand, at the kind invitation of these

Governments, when I leave Hong Kong.

11. I certainly think that an enlarged Community, including Britain, could offer

Hong Kong an extremely attractive market. Entry on fair terms should stimulate Britain's growth rate and provide a more rapidly growing market for your exports.

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