GRS.292

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HKK !?!

KAD....

FM JAKARTA 080630Z NOV 78

ROUTINE FCO/CONSULAR

NO DISTRESS 18 OF 8 NOVEMBER

PSE PASS TO CUSTOMS AND EXCISE, INVESTIGATIONS

17/1

FROM WALDER.

REG Y

Action Ten

VIST

that 15 containes

I. Mc Cluney advised us

of textile goods held @ Tilbury under suspicion of

1. WE HAVE HEARD RUMOURS THAT FOLLOWING IMPLEMENTATION OF QUOTAS BY EEC, GARMENTS FROM HONG KONG AND TAIWAN ARE

being

origin

SHIPPED TO INDONESIA, ISSUED WITH DOCUMENTS CERTIFYING ORIGIN AS INDONESIAN AND THEN BEING SHIPPED ON TO EUROPE SOMETIMES WITHOUT THE GOODS EVEN LEAVING THE SHIP. HOWEVER WE HAVE ABSOLUTELY NO FACTS TO SUPPORT THIS. BY LAW, ALL GOODS FROM HONG KONG INTO INDONESIA MUST GO TO CAKUNG, A NEW CUSTOMS WAREHOUSE COMPLEX. WE ARE TOLD THAT P.T. BONDED WAREHOUSES HAVE RE-PACKING FACILITIES IN THEIR GODWONS WHERE RE-STENCILLING OF CASES AND STAMPING OF DOCUMENTS SHOWING INDONESIAN ORIGIN (POSSIBLY SUPPLIED FROM HONG KONG) COULD TAKE PLACE.

2.

UNFORTUNATELY WE HAVE NO FIGURES SHOWING TOTAL PRODUCTION

FOR EACH FACTORY PRODUCING READYMADE GARMENTS BUT WE THINK THAT THERE ARE SEVERAL FACTORIES WHO WOULD BE ABLE TO PRODUCE GARMENTS OF A REASONABLE QUALITY FOR WESTERN MARKETS, INDONESIAN AUTHORITIES HAVE ESTIMATED THAT TEXTILE AND GARMENT EXPORTS THIS YEAR SHOULD REACH ABOUT US DOLLARS 15 MILLION, A THIRD OF WHICH IS FOR EEC MARKETS. WE UNDERSTAND FROM SOURCES HERE THAT THE MAIN ITEMS EXPORTED ARE JEANS, UNDERWEAR, TEE-SHIRTS AND BATIK SHIRTS, NOT ORDINARY SHIRTS AND BLOUSES.

40

WE THINK THAT THE AUTHORITIES WOULD ALLOW ENQUIRIES TO BE MADE HERE, IF THIS IS CONSIDERED NECESSARY, THEN JT IS IMPORTANT THAT INITIAL APPROACH BE MADE THROUGH INDONESIAN EMBASSY.

O'BRIEN

FILES:

CONS D EID (E) SEAD

HK & G D

COPIES TO: CUSTOMS AND EXCISE

INVESTIGATION DIVN

RESTRICTED

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