TNAG-0465-FCO40-530-Entitlement-of-Hong-Kong-to-EEC-Generalised-Scheme-of-Prefer-1974 — Page 73

сне

CONFIDENTIAL

ceilings for imports into the Community but these

ceilings are not sub-divided into shares for each

and so

member state is give exporting countries more

flexibility.

automatic.

And the reimposition of the CCT is not

the preferential share of any

16. It is also proposed that for the more competitive

developing countries special arrangements should be

introduced. This would be done through the 'butoir"

system which is the arrangement under which anyone

supplying countrys her imports into the Community

is subject to an upper limit which is applied automatic

ally. There would be a lower butoir for the super

competitive countries, principally Yugoslavia, Hong

Kong, South Korea, Brazil, Argentina, Mexico and Macao

Hong Kong

The

17. Hong Kong's footwear and textile exports are

currently excluded from the Community's scheme.

Commission propose to end the discrimination on footwear

but to leave the textiles position unchanged. Also

Hong Kong, virtually alone of the Commonwealth countries,

would be adversely affected by the new arrangements for

the super competitives. The Hong Kong authorities are

particularly concerned about this continuing discriminat

tion against them and in particular the possibility of

new discrimination in the special arrangements for the

super competitives.

UK LINE ON COMMISSION'S PROPOSALS

18.

We have proposed further additions, going beyond

those suggested by the Commission, to the coverage of

agricultural products, these include spices, dried

fruit and vegetables and canned meat and fishe In a tariff cut on caster cut to 7% whereas the Commission have proposed 7th (The CCT is 8%), the shart at most wide

felny

We have also asked

/(b)

NOTHING TO BE WRITTEN IN THIS MARGIN