4

9. Finally, the new categorisation proposed would, if accepted, present considerable, immediate practical difficulties for

Hong Kong and, we imagine, for most other supplying countries. We have estimated that to revise the Hong Kong quota system and redistribution quotas on the basis of the new system might

take anything in the region of two to

to four months. Since we

are already in the middle of November, the net results would be that Hong Kong could not authorise any exports for the first month or SO in 1978. In a way, this is principally a Hong Kong problem, but if there were to be no shipments, the disruption that this would cause would be a problem for the Community importers, wholesalers, retailers, and consumers too.

Hong Kong Government Office,

London.

15 November, 1977

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