TNAG-0300-FCO40-336-Entitlement-of-Hong-Kong-to-generalized-tariffs-preferences--1971 — Page 122

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! authority from the Conference in February for discussion

with the Commission of the technical modalities of this

These detailed discussions have now been

adaptation.

concluded. And we can now see clearly the problems involved.

The problems

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Apart from the date of adaptation and the tricky

question of cotton textiles no major problems arise. In

the case of both schemes we shall essentially be giving

duty free entry to the same list of developing countries

for most manufactured goods; in fact by adapting to the

EEC scheme we shall have the benefit of safeguards in the

form of quantitative limits on a range of sensitive items.

Our industry has welcomed this. This leaves the two

problems of substance the date of adaptation and cotton

textiles.

Date of adaptation to the EEC scheme

6.

We do not think that adaptation can reasonably

take place before 1 January 1974 since the generalised

preference scheme of the EEC is expressed in terms of

the Common External Tariff to which we shall only start

to move on 1 January 1974. We therefore have in mind to

propose to the Conference that we should adapt to the

EEC scheme on that date. From informal discussions with the

Commission and the Member States we think that this proposal

should not present undue difficulty.

Cotton textiles

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The question of cotton textiles is more difficult.

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