TNAG-0464-FCO40-529-Entitlement-of-Hong-Kong-to-EEC-Generalised-Scheme-of-Prefer-1974 — Page 46

VI

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VI FRENCH ILLEGAL RESTRICTIONS

were

France restricts imports of a range of Hong Kong products; Hong Kong

considers these restrictions to be illegal under GATT. rules. The main

products are textiles, carpets, lamps, radios, batteries, pleasure boats, optical goods and cameras and toys. Two items (umbrellas* and porcelain)/liberalised in 1974, three others (binoculars, microscopes and cameras) might be liberalised in 1976 or 1977 and French imports

of many of the remaining items appear to exceed the quota limits, thus indicating that the French are tacitly relaxing the controls. A recent

and successful trade mission to France by the Hong Kong Trade Development

Council proved an opportune moment for Hong Kong to make her feelings

on the restrictions known to the French privately. The visit may

have persuaded them to do something to rationalise the quotas, but no

more: total and rapid liberalisation is unlikely in the present economic

climate.

Line to take

Kr Jordan is aware of our attitude to these restrictions, which is that

while sympathising with Hong Kong, we believe that it is better not to challenge France on this issue since this might only result in the res- trictions being legalised and therefore perpetuated. The wisdom of this view is borne out by the fact that the French are known to be relaxing the

controls on some products and do not appear to be rigidly observing

ceilings on others.

We are glad that the Trade Development Council mission raised the matter privately with the French.

Note: Under Article 115 of the Treaty of Rome, the Commission has authorised France not to apply community treatment w.e.f. 7 July 1974 to clothing other than cotton and umbrellas and sunshades originating in in Hong Kong and put into free circulation in the other member states. This decision applies until 30 April 1975.