CONFIDENTIAL

PRIORITY

MEMORANDUM

To: Director of Commerce and Industry, Hong Kong

5/1138100 C.c. 12/30/20

23 JAN 1969

Repeated to: Foreign and Commonwealth Office (Hong Kong Department)

From: Counsellor (Hong Kong Affairs), Geneva.

Memorandum No. 10/69

File No. GVA/4/37

GATT

Date: 22 January 1969

French Import Restrictions

As you know, the French are now taking part in the work of the

Committee on Trade and Development, although they have apparently not yet

accepted Part IV of the GATT.

2. They have recently notified to the GATT a list of their import

restrictions (L/2981 Add.16 of 8 January enclosed). This list has been

fairly eagerly awaited by a number of contracting parties and it seems

bound to come up for discussion in some GATT forum or other in the fairly

near future.

The possibilities could be

3.

(a) the CTC Residual Restrictions Group,

(b) a group on quantitative restrictions that may be set up by the

Industrial Products Committee in connection with the exercise

on Non-Tariff Barriers, or

(c) (possible but less likely) in the context of some procedure that

may arise from the Council's consideration of the New Zealand

proposals on residual restrictions.

One or other of these exercises will obviously provide a good

opportunity to bring into the open the French discriminatory quotas against

Hong Kong and to examine them on these restrictions. However, I see from

the lists circulated by the French that they have deliberately omitted to

notify their Hong Kong list, probably because, being discriminatory, it is

doubly illegal in the GATT.

Undoubtedly, to raise this issue in an open GATT forum could be

quite embarrassing for the French and they would, to say the least, be not

/a

CONFIDENTIAL

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