TNAG-0300-FCO40-336-Entitlement-of-Hong-Kong-to-generalized-tariffs-preferences--1971 — Page 137

GENERALISED PREFERENCE SCHEME WOULD INEVITABLY RAISE IN THE MINDS

OF A COMMUNITY AUDIENCE THE QUESTION OF HOW WE WERE GOING TO CONFORM IN THE COTTON TEXTILE FIELD:

(B) IN DI MARTING'S VIEW A SOLUTION TO THE PROBLEMS INVOLVED

COULD 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:

+

(C) BUT THERE WAS FAIRLY WIDESPREAD APPREHENSION THAT OUR POLICY

OF REMOVING ALL QUANTITATIVE RESTRICTIONS ON CUR IMPORTS OF COTTON TEXTILES AND IMPOSING A TARIFF ON IMPORTS FROM THE COMMONWEALTH ON 1 JANUARY 1972 WOULD LEAD TO A SURGE OF LOW COST

IMPORTS INTO WHAT WOULD BE AN IMPORTANT PART OF THE MARKET OF THE ENLARGED COMMUNITY. THE COMMISSION REGRETTED THE FACT OF CUR NEW POLICY EUT ACCEPTED THAT THERE WAS NO WAY TO COMPEL US TO ABANDON IT:

(D) NOT TO MENTION COTTON TEXTILES THEREFORE IN THIS CONTEXT OR

TO MAKE ONLY A GENERAL RESERVE WOULD INSPIRE THE SUSPICION THAT

WE WERE GOING TO SEEK TO EXCLUDE TEXTILES EVEN AFTER WE HAD ADAPTED

TO THE COMMUNITY'S GENERALISED PREFERENCE SCHEME:

(E) AS THE COMMISSION SAW IT THE IMMEDIATE PROBLEM OF HOW WE

DEALT WITH COTTON TEXTILES AFTER ENTRY WOULD HAVE TO BE DEALT

WITH BY OUR ACCEPTING THE COMMUNITY'S OBLIGATIONS UNDER THE LONG

TERM ARRANGEMENT AND THE SUBSIDIARY ARTICLE 4 AGREEMENTS WITH DEVELOPING COUNTRIES. OF COURSE THESE AGREEMENTS WOULD REQUIRE

ADAPTATION IN ORDER TO MEET THE SITUATION FROM THE DATE OF OUR

ACCESSION UNTIL SEPTEMBER 1973 WHEN THE AGREEMENTS EXPIRE:

BUT THE COMMISSION WERE FULLY CAPABLE OF NEGOTIATING THESE

ADAPTATIONS IN THE COURSE OF 1972 IN CONSULTATION WITH US:

(F) IT WAS CLEAR THAT ANY ATTMPT ON OUR PART TO SECURE A

DEROGATION FROM THESE AGREEMENTS (ON THE GROUNDS THAT THEY HAD ONLY NINE MONTHS TO RUN AFTER OUR ACCESSION) WOULD BE OPPOSED

BY THE COMMISSION. THEY SAW 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 FOLLOW THE EXPIRY

OF THE L T A IN SEPTEMBER 1973.

SEE MIFT

F C C PSE PASS ADVANCE COPIES TO MR ROBINSON (FCO) MR STATHAM

(FCO) MR CROFT (CABINET OFFICE) MR PRESTON (DTI) MR RIDLEY (DTI)

CHRISTOFAS