Mr. Murray
Hong Kong Department.
Reference HKK 6/28
12
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Your minute of 9 July.
I note the Board of Trade consider that Article 8 remains unaffected by any letters that may have been exchanged. I am content to accept that.
2.
I do not think that Article 8 is linked with Article 11. If it had been, it would have been linked to the matters dealt with by Article 11. Consequently it would seem on the face of it that Article 8 is a valid peg upon which the Indian authorities may base their protest. In my view however the circumstances which I refer to in my next paragraph shed a different light upon the matter.
3.
Please turn to the loose minutes which are on the top of, and outside of, file EG 6/29 of 1967 entitled G.A.T.T.: Commonwealth Countries: Contractual Preferences. Mr. McKelvie of Trade Policy Department states in his minute of 15 July in that bundle of loose minutesthat the F.C.O. comments can best be co-ordinated by Trade Policy Department. The papers have been referred to the Department's Legal Adviser for advice on what seems to be in essence a G.A.T.T. matter. The questions and answers dealing with whether the protest of the Indian authorities is valid or not valid are posed in Mr. McKelvie's minute of 21 July and commented on factually by Mr. Hurden in his minute of 23 July. Mr. Butterfield in his minute of 29 July agreed with Mr. Hurden's appraisal of the position, that appraisal being that the Indian authorities by signing the Geneva (1967) Protocol, which showed the reductions of Commonwealth preference by Hong Kong on unma mufactured tobacco (with Malawi as the sole exception), the Indian authorities accepted the elimination or reduction in preferential margins brought about by the implementation of the Kennedy Round. I share Mr. Butterfield's views.
4. I suggest you send these papers on to Mr. Hurden, in view of the agreement mentioned above regarding co-ordination of F.C.0. comments by Trade Policy Department. Enclosed is a copy of this minute, in case it should be considered a worthwhile addition to the bundle of loose minutes.
I. H Cuckley
(I. H. Cruchley)
4 August, 1969.