TNAG-0385-FCO40-431-Trade-relations-between-Hong-Kong-and-the-EEC-1974 — Page 31

CONFIDENTI. L

6. we hope to embark on the 1974 annual review before the middle of next year,

so that the 1975 arrangements can be announced in good time. Meanwhile, the

Hong Kong Goverment intends to lobby in the capitals of the Six. we strongly

encourage them to do this.

7. It has to be borne in and that, for textiles, preferences or the lack

of them are of much less importance than quantitative restrictions. (And as

regards preferences on textiles, the competitors about whom Hong Kong is bost

concerned (eg S Korea and Yugoslavia) obtain limited benefit from the GT

(because of the butairs) and are also held down to a much lower level than

Hong Kong by quantitative restrictions). what will matter most for Hong

Kong'a toxtile exports from 1974 onwards will be the extent of our success

in obtaining more generous quota treatment for her and other developing

countries from the more restrictive ALC members, Cur textile policy in

the County is aimed precisely at achieving this.

Depritzent of Trade and Industry

December 1973

CONFIDENTIAL

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