000323 G.F.3
CONFIDENTIAL
CR/EIC.224/2/1III
5 - FE71969
噬
2/306/148 Kes
El 12/35100
T.I.A.B. Int/5/68
MEMORANDUM FOR THE TRADE AND INDUSTRY ADVISORY BOARD
Informal Trade Talks with France on Quotas for 1968
(The annual Informal Trade Talks between
representatives of the French and Hong Kong
Governments took place in Paris on 16th - 17th
January 1968. This memorandum contains a
summary of proceedings and lists of quotas for
1968 allocated to Hong Kong by the French
Government.)
G
Introduction
At the November 1967 meeting of the Board, Members noted that the Hong Kong Government intended to hold talks on the 1968 quotas as early as possible in the New Year and advised that an aide memoire enclosure 2 to T.I.A.B. M/18/67 suitably amended) be sent to the French Government outlining the basis for discussion and in particular suggesting item by item arguments for liberalisation or at least substantially in reased quotas. In December, the British Embassy in Paris forwarded the aide memoire to the French Government who agreed that the talks should take place in Paris on 16th 17th January 1968.
2.
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Hong Kong was represented by Mr. Miller, Deputy Director of the Commerce & Industry Department and Mr. Dodge, Assistant Director in charge of the Department's Brussels Office. The French Government were represented by officials from the Ministries of the Economy and Finance, Industry and Foreign Affairs.
The French Position
3.
The French officials began by noting the increase in trade in both directions over the last six years and emphasised that the rate of increase for Hong Kong exports to France had been six times more than that for French exports to Hong Kong, even if the balance were still in France's favour. They agreed that the trade flow in both directions was not what it could or should be, but could not accept that this resulted from the French restrictions on Hong Kong (paragraph 6 of the aide memoire). They pointed out that 66% of Hong Kong's trade was liberalised and there was no non-commercial reason why Hong Kong's exports in the liberalised sector should not have expanded. They pointed to the composition of the trade, which in the case of France mainly comprised brandy and perfumes and the fact that Hong Kong actually enjoyed a favourable trade balance in terms of manufactured goods. As for the French economy and its immediate prospects, the French officials indicated that, following a favourable balance of trade for the period 1958 to 1965, France was now experiencing a deficit which was expected to deteriorate further in 1968. Moreover, French industry was concerned about the prospects in store for 1968
NEIDENTIAL
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