TNAG-0342-FCO40-378-Effects-on-Hong-Kong-of-long-term-policy-for-textiles-in-int-1972 — Page 85

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73)

Mr Crowson (HKIOD)

HONG KONG'S GATT RELATIONSHIP WITH THE ENLARGED EEC

1. As you know, one facet of the present problem affecting imports of polyester/cottons from Hong Kong is that an imposed restraint arrangement would provide a precedent for a similar imposition by the Community against Hong Kong. We spoke recently about the possible GATT complications. As I understand it, Hong Kong has no GATT relationship with the United Kingdom but she does have GATT relationships (through the UK) with the other 9 of the enlarged Community. The EEC is not a member as a single entity.

2.

Following on this, do we know what the position would be if the Community imposed restrictions on Hong Kong? It seems hardly tenable that Hong Kong would have rights under GATT to demand equivalent retaliatory action against the other 9 by virtue of her relationship with the remaining 10th member. this a problem which we need to raise with the legal advisers and DTI experts?

3.

I am copying this to Mr Burns (TPD) and Mr Morland in EID(1).

Is

JT Williams

J T Williams

22 September 1972

Commodities Department

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