2800027
C.S. 20A
CONFIDENTIAL
SAVING RXXXX DESPATCH
From the Governor, Hong Kong Foreign & Commonwealth Affairs
To the Secretary of State for tax@xoxxas
Repeated to
British Embassy, Algiers
TULION AND G
ROTHEALTH
Ambassador Washington (for Herdla MAR 1969
7th March, 1969.
T.C. 69/67
AFFIUE
Repeated to:-
My Reference...
HWB 6/36-
Glems
3
No. 245 No.....M.30 No. M31
RECEIVED IN ARCHIVES No.3·1⋅
6
Your Reference.NT
Algerian Import Duties
20 MAR 1969
My telegrams 440 and 441, 1967 refer.
HKK 6/34 x
Trade statistics indicate that our exports to Algeria continue to suffer as a result of the Algerian application of their general tariff rates to imports from Hong Kong with effect from 23rd February, 1967. Exports of Hong Kong manufactures have decreased in value from HK$7.4 million (£460 thousand) in 1966 to HK$6.3 million (£400 thousand) in 1967 and further to HK$293_thousand (£18 thousand) in 1968.
2.
The alleged reason for this discrimination was the imbalance of trade in favour of Hong Kong. Despite the fall in our exports, the balance of trade continues in our favour. It still remains broadly true that Algeria offers little of interest to Hong Kong and the chances of its correcting the unfavourable balance by increasing exports to Hong Kong are remote. If Algeria reverts to applying the most-favoured-nation rates of duty to imports from Hong Kong, the imbalance can only increase.
3.
Nevertheless we feel that we must, on point of principle, continue to remind the Algerian Government of our objection to this discrimination. Would you agree, therefore, to the British Embassy in Algiers lodging another formal protest on our behalf? The body of the text of the Note to the Algerian Government might be on the following lines:
"The Government of Hong Kong wish to refer to their Note of 12th April, 1967 concerning the Algerian Government's application of their general tariff rates to imports from Hong Kong from 23rd February, 1967.
The Hong Kong Government wish to express their concern over the fact that although they have continued to apply the General Agreement on Tariffs and Trade on a de facto basis in their relations with Algeria and maintain no tariffs or any discriminatory barriers to trade on imports from Algeria, the Algerian Government have not taken any action to change the situation and have continued to apply their general tariff rates to imports from Hong Kong.
The Hong Kong Government would be grateful, therefore, if the Algerian Government could revert to applying their most-favoured-nation tariff rates to imports from Hong Kong."
2.
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