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2.
Another strong reason for avoiding arguments with Hong Kong on trade is that our recent success in winning the Castle Peak 'B' Power Station order has created a good climate for UK exports to Hong Kong.
are to take advantage of major projects now being planned (the MTR extension and a new airport) this should not be undermined.
I suggest that we follow the strategy, proposed by our Senior British Trade Commissioner there, of -identifying the true extent of Hong Kong import
penetration in the UK market; cooperating with the Hong Kong authorities to ensure that third countrý... manufactures are not being re-shipped or re-packed through Hong Kong to avoid the VRA system; "and, third, promoting joint ventures and technical cooperation between the UK and Hong Kong industries. I think this offers a much better prospect of a cooperative response from Hong Kong and could be used to show the Manufacturers' Associations that HMG are watching their interests. However, I hope strongly that you will agree that any thought of broaching the question of a VRA in consumer electronics - or indeed in any other sector should be dropped.
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I am copying this letter to Cecil Parkinson.
Yines ever
Jom Macgregar
[ amoroved by Mr Blatter
and signed inhis absence
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