3
SECRET
4
cut back in imports of these products from Portugal. iii As regards Hong Kong I think we must accept that new
overt restrictions which would mean reopening the recently negotiated MFA agreement on import controls - are out of the question. Some of my colleagues feel, however, that we should press Hong Kong bilaterally to apply additional restrictions at their end. I can only say that I tried this idea out on the Governor myself when I saw him last week and that his answer .....was very firm, He saw no chance of persuading Hong Kong
industry to accept such further restrictions and he was not prepared to try.・・・
..
iv As regards colour television tubes, I do not believe
that our interests would be served by the introduction of import controls. The main problems of this industry are overcapacity and price: the latter har been dealt with by our agreement with the major overress suppliers to raise the price of imports of those types of tubes made in the UK. The great majority
as much as 90% - of imported tubes are of types and sizes not manufactured in the UK and to control these
would only damage the set-making industry. Even if a scheme could be devised to keep out imports of those tubes which are made here it would be highly objectionable in terms of our international trade obligations, damaging to our trade relations with the United States and Japan who would be almost certain to retaliate and unlikely to assist greatly in the current problems of the industry. I have already announced by intention to introduce surveillance licensing on tubes and sets and I am strongly of the view that this must cover imports from all sources, including the EEC.
I realise that cars is the crucial element in all this. I would only say that, after all the expectations which have been aroused, our supporters would not understand a
SECRET