TNAG-0300-FCO40-336-Entitlement-of-Hong-Kong-to-generalized-tariffs-preferences--1971 — Page 107

FCO40 Hong Kong Department Records 聯邦事務部香港部檔案 All

NOTHING TO BE WRITTEN IN THIS MARGIN

CONFIDENTIAL

we shall ipso facto be accepting a return to

quantitative restrictions. AS paragraph 10

of the paper explains, this will render us open

to the virtual certainty of criticism from

Commonwealth countries, thich, other things being

equal, we should do our best to avoid.

6. Other things however are not equal. AS

paragraph 11 explains, if we attempted to secure a

derogation from the application of Article 4 of the

Long Term Arrangement, we should be extremely unlikely

to get it. The chances are strongly that we would

have in the end to give in after a public row, which

we would be publicly seen to lose. We should also

add to the dangerously long list of issues which

anyhow remain to be settled in the remaining

weeks of the negotiations.

&. The disadvantages in paragraph 6, which would

be both immediate and dangerously prejudicial to our

negotiating aims, outweigh those of paragraph 5,

on which in any case we have time to consider

palliative action (see below). We should therefore

not seek a derogation from the Community, and accept

as a consequence the re-introduction of

quantitative restrictions on cotton textiles from

our date of entry. We should not however parade this

acceptance. As recommended in paragraph 14(c) of the

paper, we need not specifically announce it. If the

Community ask us our intention we should press them

not to publicise our reply.

3. While the above is the only realistic solution

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