TNAG-0302-FCO40-338-Effects-of-tariffs-on-imports-of-cotton-textiles-to-UK-from--1971 — Page 50

CONFIDENTIAL

Discussions with Rt Hon & Ripron in llong Kong 12. 9.70

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"Mr Rippon said that assuming the four applicants gained onbry, tho enlarged Community was going to be very differont to the Bix. The UK l the other applicants would inject different views from some of those. prevalent at the moment and this had been for some time the fear of certain present members."

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4. Record of a Joint TIAB/TEXTAB Meeting held in the Commerce & Industry

Department 14. 9.70.

"Mr Rippon -The decision on textile tariffs had been taken by the previous Government and had yet to be reviewed by the new one: but he thought its reversal unlikely. He appreciated the dangers of trade disruption, for the Lancashire industry as well as Hong Kong, of short term policies but foresaw no danger of Hong Kong having to face both tariffs and quotas before British entry into the EEO; and only then if the policy of the enlarged EEO still demanded it by the end of the transition period."

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"Mr Rippon approoiated that the political situation constituted an additional problem. Hong Kong was a dependent territory of Britain but it was intended during the negotiations to remind the European Communities that there were wider interests involved. He appreciated that China had a strong interest in maintaining the Status-quo in Hong Kong. He thought Mr Cater's views were very relevant.He hoped that there would be no dramatic out in wages in any sector of industry as a consequence of British entry into the EEC. He felt that problems of that naturo were more likely to arise from the protectionist policies, and those the UK would hope to be able to influence effectively from within the enlared Community."

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