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ADWAYZE COPY ADVANCE
Hand, Hong Kong Dept Head Trade Policy Dept Ha American Dept.
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CYPHER/CAT A
PRIORITY WASHINGTON
TELEGRAM NUMBER 78
CONFIDENTIAL. [NEUTRAL],
FROM HERMANN.
TO: HONG KONG
19 DECEMBER, 1969.
CHANGES IN FOREIGN ASSETS CONTROL REGULATIONS.
FULL TEXT IS NOT YET AVAILABLE HERE BUT IS BEING TELEGRAPHED TO B.A.C.H. WITH INSTRUCTIONS TO HAND IT TO YOU ON MONDAY MORNING.
2. MAIN POINTS OF INTEREST TO HONG KONG ARE:
(A) REMOVAL OF PROHIBITION ON PARTICIPATION BY U.S. NATIONALS
IN THIRD COUNTRY TRADE IN PRESUMPTIVE GOODS. IT IS NOT CLEAR WHETHER RELAXATION ALSO INCLUDES THIRD COUNTRY TRADE IN CHINESE GOODS. BUT IT SOLVES THE CERTIFICATION PROBLEM WHICH HAS DOGGED US FOR SO LONG.
(B) REMOVAL OF PROHIBITION ON IMPORTS OF CHINESE GOODS INTO
THE U.S. PROVIDED THEY ARE FOR NON-COMMERCIAL USE, AND REMOVAL OF THE RECENT 100 U.S. DOLLAR LIMIT. THIS APPEARS
TO ABOLISH BOTH TOURIST AND MAIL ORDER C.C.O.'S. 3. I WOULD HOPE THAT THIRD COUNTRY SOLUTION CLEARS THE WAY TO SOLUTION ON LATE C.C.O.'S BUT I WOULD STRONGLY URGE YOU NOT TO ROCK THE BOAT BY TAKING UNILATERAL ACTION ON THIS ASSUMPTION. IN FACT IT MIGHT BE APPROPRIATE, WHILE LETTING THE DUST SETTLE HERE, TO EXAMINE RESIDUAL RESTRICTIONS TO SEE WHICH ONES ARE CLEARLY INCONSISTENT WITH PRESENT POLICY AND THEN ATTACK THEM ON THAT BASIS THROUGH DIPLOMATIC CHANNELS.
F.C.O. PASS PRIORITY HONG KONG.
MR. FREEMAN.
SENT: 21032/19 DEC AA