TNAG-0384-FCO40-430-Trade-relations-between-Hong-Kong-and-the-EEC-1973 — Page 163

a

b

C

We are unwilling to accept new Community-wide

restraints for the sake of uniformity where the

problem is only local.

We want countries pressing for new restrictions,

or seeking to justify old ones, to demonstrate

disruption.

Our textile imports from low-cost sources are very

large by comparison with those of other member

states (except Germany), and equalisation of this

burden and free circulation of textiles is seen

as a threat by most of the Six.

4. We must expect this conflict to continue in the coming months as the Community negotiates new agreements (on a wider range of products) to replace existing cotton agreements, all of which expire at the end of this year, and agreements with

extra supplying countries.

Generalised System of Preferences (GSP)

5. Another element which will add to the conflict is our

Treaty obligation to align to the EEC's existing GSP for textiles on 1 January 1974. In July the EEC Commission

proposed that the UK should align to the scheme by accepting a share of the tariff quotas equal in size to that of Germany, while Denmark and Ireland would accept smaller shares, and the Six would increase their shares by adding 5% to the 1973 figures, as had been done in the past. We have said that the proposal presents serious difficulties for us, and reserved our position. The need for new regulations to be adopted by the

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