TNAG-0281-FCO40-317-Visit-of-the-Chancellor-of-the-Duchy-of-Lancaster-to-Hong-Ko-1970 — Page 74

Q

CONFIDENTIAL UK EYES ONLY

Of course, for man-made fibre goods you and other Commonwealth

exporters alreadyfa ce aduty on entry to our market, and you

will know that we have announced our intention of imposing a

15% duty on Commonwealth cotton textile imports from 1 January

1972.

Clearly the application of the CET

albeit at its

K

would be

But I was

relatively moderate post-Kennedy Round level

unwelcome for your other exports to Britain.

interested and impressed to learn that the detailed study done

for the Hong Kong Trade and Industry Advisory Board in June

indicated that the results of the CET for goods other than

textiles might be less serious than had been previously

envisaged.

Common Commercial Folicy

6.

}

A more serious danger, it seems to me, is that in

addition to the CET, the Six may move towards a Common

Commercial Policy in relation to Hong Kong by adopting a

common range of quantitative restrictions. Such a move would

be in conflict with the provision in Article XXIV of the GATT

that the formation of a customs union or free trade areas

should not lead to the intensification of existing barriers to

trade, and as non-members of the BBC we should certainly resist

such action. But we must recognise that our arguments might

not prevail. We must recognise too that as members of an

enlarged ELEC we shall be expected to conform to the Common

Commercial Policy.

LINCTAD

CONFIDENTIAL UK EYES ONLY