CYPHER/GAT A

ROUTINE

HONG KONG

RESTRICTED

TOP COPY

TO FOREIGN AND COMMONWEALTH OFFICE

HONG KONG TELEGRAM NO. M557 TO BRUSSELS

8 NOVEMBER 1968

HK

RESTRICTED

[NEUTRAL]

ADDRESSED GRUSSELS (FOR DODGE) TELEGRAM NO. M557 OF 8TH NOVEMBER.

3

YOUR TELEGRAM NO. 42.

COTTON TEXTILES TO BENELUX.

AS WE SAID IN NEGOTIATIONS, WE WOULD WELCONE DE-LIBERALISATION OF

RESTRICTED HONG KONG COTTON TEXTILES FROM THIRD COUNTRIES.

2. TO ENSURE THAT HONG KONG GETS MAXIMUM BENEFITS POSSIBLE FROM

RESTRICTIONS, WE PREFER IMPORTING COUNTRIES TO INSIST ON CERTIFICATES

OF ORIGIN, AND OUR SYSTEN IS EASIER TO ADMINISTRATE IF THE IMPORTING

COUNTRY INSISTS ON C. AND I. CERTIFICATES. THE EXCHANCE RECORDED IN

PARAGRAPHS 158 AND 159 OF THE RECORD WAS LITTLE MORE THAN A TOKEN

GESTURE ON OUR PART. THUS ANYTHING YOU CAN DO TO DISCOURAGE THE

BENELUX FROM PURSUING THEIR IDEA OF ABANDONING THE CERTIFICATION

REQUIREMENT WOULD BE HELPFUL.

3. PLEASE POINT OUT TO KOOPS THAT UNLESS THEY REQUIRE CERTIFICATES

OF ORIGIN FOR TEXTILES UNDER RESTRAINT FROM ALL SOURCES

(A) HONG KONG TEXTILES COULD ENTER BENELUX FROM THIRD COUNTRIES

AS OF UNSPECIFIED ORIGIN SECCLON

(E) ANOTHER FORK OF THIRD-COUNTRY TIME COULD DEVELOP, 1.E. REALLY

LOW-COST TEXTILES FROM OTHER COUNTRIES DEING SHIPPED VIA HONG

KONG UNDER OUR QUOTA.

4. WHY ARE THEY THINKING OF ALANDOMING THE CERTIFICATION PA

REQUIREMENT ANYWAY?

RESTRICTED

/5.

YRECEIVED IN

ARCHIVES No.31 - 8NOV 1968

HWAG/SOUT

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