TNAG-0300-FCO40-336-Entitlement-of-Hong-Kong-to-generalized-tariffs-preferences--1971 — Page 124

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

8.

These difficulties for both ourselves and the Six of

a literal application to us of their present arrangements

for cotton textiles in the GPS are such that a solution

will clearly have to be found by negotiation during 1973. Indeed the Commission have expressly said that a solution to these problems can be found within the framework of

the technical adaptations which would have to be carried

out during 1973 to enable the Community's Generalised

Preference Scheme to be applied a dix from 1 January

1974. So this does not seem to be an immediate problem.

9. More difficult is the short term problem on cotton

textiles. The Community are apprehensive (of para 3 above)

about the effect of our abandoning qr on 1 January 1972.

And the Commission have told us that in their view (which

we accept as juridically correct) the agreements of the

Community with seven countries (India, Pakistan, the UAR,

Hong Kong, South Korea, Taiwan and Japan) under Article 4

of the Long Term Arrangement whereby exports of cotton

textiles from these countries to the EEC are restrained

to a certain level, will automatically apply for the

remainder of their life until September 1973 to include

the UK (and the other candidates) from 1 January 1973,

subject naturally to renegotiation of the quantities involved

unless we secure a specific derogation from the Conference.

The Commission see our integration into these agreements

from the date of accession as the means of bringing us

back under a quantitatively controlled regime in advance

of the need to reach agreement within the enlarged Community

on a mandate to negotiate the arrangements which would

5.

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