CONFIDENTIAL
PUT INTO EFFECT THE 'AVIS AUX IMPORTATEURS' PUBLISHED IN THE JOURNAL OFFICIAL NO. 144 DATED 23 JUNE 1977, AND STOPPED ALL IMPORTS FROM HONG KONG OF THE PRODUCTS CONCERNED, DESPITE CLAUSE VI OF THAT NOTICE WHICH SAID THAT GOODS SHIPPED BEFORE 23 JUNE WOULD NOT BE AFFECTED (SEE ALSO PARA 2(D) OF PARIS TELNO 629). THIS IS CAUSING GREAT HARDSHIP TO OUR EXPORTERS AND MANUFACTURERS. SOME GOODS ARE ALREADY BEING HELD UP BY THE FRENCH CUSTOMS WHILE OTHER HAVE ALREADY BEEN COMPLETED AND ARE AWAITING SHIPMENT FROM HONG KONG, NOT TO MENTION THOSE WHICH HAVE BEEN PARTLY FINISHED AND THOSE FOR THE MANUFACTURE OF WHICH RAW MATERIALS AND OTHER
COMPONENTS HAVE ALREADY BEEN PURCHASED. SOME LETTERS OF CREDIT
HAVE ALREADY EXPIRED AND SOME ARE DUE TO EXPIRE SHORTLY. ALL THESE
GOODS ARE OF COURSE COVERED BY ORDERS MADE AGAINST EXPORT QUOTAS
ISSUED BY THE HONG KONG GOVERNMENT IN ACCORDANCE WITH THE PROVISIONS
OF THE EEC/HK BILATERAL AGREEMENT.
5. THE TRADE HERE IS UNDERSTANDABLY ALARMED AND CONCERN HAS BEEN
HEIGHTENED BY THE PRESS REPORTS FROM BRUSSELS REFERRED IN MIFT.
CLEARLY WE CANNOT SIT DOWN UNDER THIS. THE DIRECTOR OF COMMERCE
AND INDUSTRY YESTERDAY CALLED IN THE FRENCH CONSUL GENERAL TO EXPRESS OUR GRAVE CONCERN AT THE FRENCH ACTION WHICH AMOUNTS TO A UNILATERAL
ABROGATION BY FRANCE OF THE BILATERAL AGREEMENT CONCLUDED BETWEEN
HONG KONG AND THE COMMUNITY UNDER THE MFA AND RATIFIED BY THE
COUNCIL OF THE EUROPEAN COMMUNITIES ON BEHALF OF FRANCE AND OTHER
MEMBER STATES: AND TO SEEK AN ASSURANCE THAT THE FRENCH GOVERNMENT
WILL TAKE IMMEDIATE ACTION TO ENSURE THAT THE TERMS OF THE BILATERAL
AGREEMENT ARE RESPECTED, IN PARTICULAR ITS ANNEEX 111, THE RELEVANT
PASSAAGE OF WHICH SAYS 'THE COMPETENT AUTHORITIES IN THE
COMMUNITY WILL (NEXT FOUR WORDS UNDERLINED) AUTOMATICALLY AND
WITHOUT DELAY, ACCEPT IMPORTS OF THE TEXTILE PRODUCTS REFERRED TO ABOVE (1.E. THE ''PRODUCTS TO WHICH THE AGREEMENT APPLIES'') ON
SUBMISSION OF THE IMPORTER'S APPLICATION TOGETHER WITH A CERTIFIED
COPY OF THE LICENCE" (ISSUED BY HK)
RO
6. THE DIRECTOR OF COMMERCE AND INDUSTRY HAS ALSO SENT FOR THE
BELGIAN CONSUL GENERAL, IN HIS CAPACITY AS REPRESENTATIVE OF THE PRESIDENCY, TO SEEK ASSURANCES THAT THE AGREEMENT WILL BE RESPECTED.
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CONFIDENTIAL
/ 7. I SHOULD
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