CONFIDENTIAL
OUTWARD TELEGRAM
FROM THE COMMONWEALTH OFFICE (The Secretary of State)
TO HONG KONG (Sir D. Trench)
Cypher
HWB 6/2
Sent 17 May, 1967.
1955Z
PRIORITY
CONFIDENTIAL
No. 945
15
LAST
**F
Addressed to Governor Hong Kong
Repeated
#
Brussels.
#t
tt The Hague
#1
U.K. Mission, Geneva.
Exports of Textiles to Benelux Countries.
Representatives of Dutch and Belgian Embassies called urgently on Board of Trade today and delivered identical Aides Memoire. Understand that Luxembourg Embassy would have presented similar note had their representative been available.
2.
Gist of note (which follows by bag) is that Benelux Governments are gravely concerned at effect of increasing imports from Hong Kong of goods falling within Benelux statistical numbers 61.03.70; 61.04.50; 62.02.03; 62.02.05; 62.02.25; and 62.02.20 (nightwear for men and women, handkerchiefs and table, bed and household linen of cotton) especially during 1966. They state that these increasing imports are giving rise to market disruption to detriment of their textile industry.
3.
They accordingly request Hong Kong Government to engage in consultations under Article 3 of L.T.A. of 1 October, 1962. They add that owing to present critical circumstances and to prevent irreparable damage to Benelux industry they will regulate further imports in accordance with provisions of Article 3 bearing in mind interests of Hong Kong in terms of paragraph 5 of Article 3.
4.
Although it is not mentioned in Aide Memoire, Dutch representative stated that it was intention to impose restrictions as from tomorrow (18 May). It was pointed out to them that this was very drastic action. If you are likely to be in position to enter into consultations during next few days it might be worthwhile asking Benelux Governments to postpone imposition of restrictions pending consultations. But if this is to be done it will have to be done quickly.
5.
Grateful to learn whether you wish to pursue this matter locally with Benelux Consul General or whether you would like it to be pursued here.
(Passed to D.S.A.0. for repetition to Brussels,
The Hague and UKMIS Geneva)
(14)
16/2044
CONFIDENTIAL
/INTERNATIONAL