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Reference...
(9)
soundings in Rome and the present situation is that a draft Note Verbale, prepared by the Board of Trade, has been sent to Hong Kong for her comments, preparatory to our submitting it to the Italians in the New Year.
United Arab Republic Consular Endorsement
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Here also Hong Kong is concerned about the high level of charges imposed by the U.A. R. for Consular endorsements. These endorsements are only required intermitt- ently, and Hong Kong thinks that there is a discrepancy between the charges authorised by Cairo and those charged to Hong Kong. Enquiries are going ahead in Cairo, with a view to clarifying the present requirements of the U.A.R.
(10) Algeria
Algeria has a very stringent import regime, which, together with the applicatio of a very high general tariff against Hong Kong, has had the effect of reducing Hong Kong's export trade to Algeria by 95 per cent between the periods January to June, 1967 and 1968. Hong Kong intends to protest to the Algerian Government, and are at present seeking the advice of the commercial section of our Embassy in Algiers.
(11) South African Anti-Dumping.
South Africa is suspicious of low cost imports from Hong Kong, and suspects Hong Kong of dumping. It has been difficult to refute this allegation because of Hong Kong's lack of a domestic market in which to obtain comparable domestic values of her products. South Africa sent a delegation of officials to Hong Kong in June to judge the situation for themselves. We have not yet been informed of any reaction or change in South African legislation.
(12) Channel Islands
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Hong Kong have recently enquired. whether the Isle of Man and the Channel Islands fall within quota arrangements entered into by the United Kingdom. enquiry is not inspired by any intention to use these islands as a back door for imp rts, mainly of cotton textiles, to this country, but so that imports destined for the islands can be deducted, if they have to be, from the U.K. quota.
Customs and Excise are at present investigating the position and hope to reach a decision on this matter within the next week.