TNAG-0300-FCO40-336-Entitlement-of-Hong-Kong-to-generalized-tariffs-preferences--1971 — Page 103

CONFIDENTIAL

the sole means of the tariff from 1972 shall be maintaind, even

against pressure from industry to supplement the tariff with

quota restrictions.

14. On the other hand, in AE(71)35, paragraph 7, the LTI for

their part appear to argue that to remove duties upon the

re-imposition of quantitative restrictions would be damaging, and

consequently unwelcome, to both the UK and the EEC textile

industries.

15. This conflict of opinion between the ODA and the FCO, and

the DTI, cannot be settled satisfactorily in a single meeting.

Happily, it need not be. The Committee on 25 October is asked to

decide on the timing and nature of an early approach to the

Community, without committing itself either to the details of

subsequent negotiations or to the future development of UK textile

policy, provided that no derogation is sought from Community

practices.

16.

This brief has been agreed with the ODA; and with Trade

Policy, Commodities, South Asia and Hong Kong Departments.

22 October 1971

CC

Mr Thornton, Cabinet Office

Sir M Walker ODA

Sir S Tomlinson

Private Secretary Mr Bottomley

Mr Keeble

Mr Simmonds

Mr Hale

Mr Sutherland

Mr Mershall

Mr Lairdi

John Martin

J C M Mason

European Integration Dept.(1)