CONFIDENTIAL

RARE di Morraz

CRE 19860/2G

Тый

cc Miss K.E. Boyes (CREI

Mr.A.F.Toms (CRE2) Mr. S.J.Gross (T) Mr. S. Stewart (11) Mr. Barry (CRES)

BOARD OF TRADE,

1 Victoria Street,

S.W.1.

25th February, 1969

Мий

Ita das This compar with

action on H.K's balalf?!!!

Mar

During the early part of last year you were corresponding with Phillips (whom I have succeeded) about the Austrian anti-dumping legislation.

You will see from the enclosed copy of a letter dated 12th February from Marks and Spencer Limited that the misgivings expressed by Phillips in his letters of 21st March and 20th May seem to have been all too well founded.

2. I should be grateful if you would now make the strongest representations to the Austrian authorities and secure both the remission of the duty of 675 Austrian schillings imposed by them on this consignment of goods and an assurance (which we can pass to Marks and Spencer) that this will not happen again. You will see from

the firm's letter that their exports are so priced that there is no question of their offering goods abroad ot less than the comparable price, in the ordinary course of trade, for the like product when destined for consumption in this country. The articles to which the Austrians have applied a duty were not, therefore, being dumped. Moreover, there is nothing to show that the Austrian authorities considered whether there was any question of material injury or the threat thereof to domestic industry, as they are required to do by Article VI of the GATT.

P

27/

3. It seems quite clear that, in the absence of any valid grounds for applying a genuine anti-dumping duty to this consignment of goods, the Austrians have merely applied to them as they are presumably doing to shipments of similar goods from Hong Kong -the minimum price regulations laid down in accordance with their anti-dumping

This action deprives the British goods of the duty free entry to which they are entitled under the EFTA Convention.

law.

4. Quite apart from the embarrassment we feel vis-a-vis Marks and Spencer Limited - a firm whose marketing efficiency and price consciousness are well known it is most important for our exports generally that the Austrians do not get into the habit of illegally trying to protect their domestic industries in this way. We must therefore react

His Excellency Sir Anthony Runbold, BT., K.C.M.G., CB.,/very

British Embassy,

Vienna.

IN

VL. No 31

¦ 27FEB1969

HICK 6/2

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