TNAG-0386-FCO40-432-Exports-of-non-cotton-textiles-from-Hong-Kong-to-the-EEC-1973 — Page 196

CONFIDENTIAL

THE POINT IS THAT ANY COMMUNITY AGREEMENT, EVEN IF, AS WITH COTTON,

IT ONLY GAVE US EXPORT CONTROL OF THE PRESENT FRENCH QUOTAS, WOULD IN PRACTICE INCREASE OUR ACCESS TO THE FRENCH MARKET.

7. IN THESE CIRCUMSTANCES, IT MAY BE THAT THE ONLY WAY TO AVERT UNILATERAL GERMAN IMPORT RESTRICTIONS, WOULD BE FOR THE COMMUNITY TO AUTHORISE THE GERMANS TO NEGOTIATE DIRECT WITH US ON POLYESTER/COTTONS, FOR WHICH THERE IS ALREADY A UK PRECEDENT FOR A COUNTRY AGREEMENT, ALBEIT NEGOTIATED BEFORE ENLARGEMENT. IN THE ABSENCE OF A COMMON POLICY, AND BECAUSE THERE IS NO REAL FREE CIRCULATION, THIS WOULD BE A SENSIBLE WAY OUT. IT SEEMS TO US THAT IT WOULD IN PRACTICE NOT BE LESS 'COMMUNAUTAIRE' THAN OUR COTTON AGREEMENT, WITH ITS COUNTRY QUOTAS AND NO FREE CRICULATION.

8. WE HOPE THAT YOU WILL AGREE TO PASS THESE COMMENTS TO UKREP

BRUSSELS IN TIME FOR THIS AFTERNOON'S MEETING,

FCO PASS COPY TO HONG KONG GOVERNMENT OFFICE LONDON

MACLEHOSE

1

[ADVANCED AS REQUESTED]

EUROPEAN ECONOMIC DISTRIBUTION EID

ADDITIONAL DISTRIBUTION FRAME

3 ~ CONFIDENTIAL

COPIES TO:

HONG KONG GOVERNMENT OFFICE,

LONDON