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"B" ICL/-

21st February, 1969

35

2.

12

Thank you for your letter CRE.25974G of 13th February.

The position regarding the Hong Kong Government is quite clear. They give no preference to British goods. They call international tenders whenever they can. They then purchase the cheapest suitable item.

3. Having said that I should add that the British expatriate Hong Kong Government Officers will generally buy a British product in preference to a foreign one if its price and other qualities make it fully competitive with the foreign item.

4. There is no sentimental attachment to Britain in commercial matters either in Government of business circles. In fact the reverse often seems to be the case, especially when such items as the tunnel or the Kai Tak extension have been in the news.

5. I should explain that this cold blooded attitude is not confined to the Hong Kong Government's import policy. They practice it in their home policy also, as can be seen in the way they are deliberately letting their steel re-rolling industry go bankrupt, when they could easily save it by specifying that the vast Government housing programme should use Hong Kong made reinforcing rods instead of dumped Chinese, North Korean or Japanese rods.

6.

I am copying this letter to Herbert Stewart, F.C.O., J.E. Sellers, Mintech and J. Brown, E.S.B.

10

32)

(H.P.V. Hannam)

Principal Trade Commissioner

J. E. Gowers, Esq.,

Board of Trade,

Commercial Relations and xports Department,

1. Victoria Street, London, S.W.1.

COMMERCIAL IN CONFIDENCE

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