TNAG-0385-FCO40-431-Trade-relations-between-Hong-Kong-and-the-EEC-1974 — Page 145

CONFIDENTIAL

4. IN GREATER DETAIL IT PROPOSES THAT THE AIMS WOULD BE SERVED BY

INCREASES IN THE COMMUNITY RESERVE, BY INCREASES IN THE SHARE OF

TOTAL IMPORTS OF THE WEAKEST IMPORTERS AND BY ALLOWING GREATER

FLEXIBILITY TO THE EXPORTING COUNTRIES IN THEIR CHOICE OF MARKETS

WITHIN THE COMMUNITY TO WHICH THEY SEND THEIR GOODS. WHEN THIS

STAGE IS REACHED THE PAPER ONSERVES THAT THE COMPARTMENTALISATION OF THE MARKET WOULD BECOME PURPOSELESS (SANS OBJET).

5. THERE ARE PARALLEL REFERENCES TO THE GENERAL TEXTILE POLICY IN THE COMMISSION'S PAPER ON GENERALISED PREFERENCES, ALREADY SENT TO DTI, AND IN THE REPORT OF THE WORKING GROUP ON PREFERENCES TO BE SENT BY BAG 22 OCTOBER IF A REASONABLY CLEAN TEXT IS AVAILABLE.

FCO PLEASE PASS ADVANCE COPIES TO:-

FCO HART, BUTLER.

CABINET OFFICE - O'NEILL,

DTI

-

RIDLEY, LAM, MISS LOWNE, MISS ELLIOTT, ROWNALL.

PALLISER.

[ADVANCED AS REQUESTED]

EUROPEAN ECONOMIC DISTN

TRED

EID

ADDITIONAL DISTN

FRAME

COPIES TO MR RIDLEY

ст Div этI MILLBANK

2 CONFIDENTIAL