Brief 13
A
1. IMPORTS OF MONOCHROME TV'S
Following Mr Baker's visit to Hong Kong in April this year, the Hong Kong authorities have been providing export statistics which itemise monochrome TV sets actually manufactured in Hong Kong separately from those just trans-shipped through Hong Kong. These have indicated that there is an almost totally unrestricted ability on the part of manufacturers in such countries as Taiwan and South Korea to 'launder' their TV products through Hong Kong which is eroding the efficacy of the voluntary restraint agreements that have been laboriously built up with Japan and other countries over recent years.Unless this haemorrhage is stemmed quickly then first the remains of the UK monochrome TV manufacture and then the much more important colour television manufacture will be
put at risk.
Understandably however the Hong Kong Government is unwilling to prevent such trans-shipments and would resent any UK pressure to intervene in such an activity since this would threaten Hong Kong's
position as an entrepot.
LINE TO TAKE
1. It would be appropriate fotr the Secretary of State to express the increasing concern of both the UK industry and the Department at this state of affairs.We would welcome constructive discussion with the Hong Kong authorities and industry on ways in which the situation can effectively be controlled without of course penalising sets genuinely manufactured in Hong Kong.If effective measures cannot be put in place within a space of months then in concert with our European partners we will have to consider ways and means of controlling the situation on a total "South East Asian basis".
2. The Secretary of State should express his appreciation for the help given by the Hong Kong authorities in providing statistics of trans-shipments. Any further information that can be released would be helpful eg. the names of the manufacturers of the trans- shipped sets as this would better enable the industry to police
the VRA's.