M12h 121/12
RECEIVER B BORTA, 47
4 DEC1951
DESK OFFIC
INDEX
No
Miss A J Brimelow CREL
Department of Trade
1 Victoria St
SWI
MA
RESTRICTED
British Embassy Paris
27 November 1981
M
Enter
in bager
Juchin
40.4
den Nou brinulan
116
QUANTITATIVE RESTRICTIONS: FRENCH ACTION AGAINST QUARTZ WATCHES
FROM HONG KONG
I
2.
I wrote to you on 25 November about this subject.
I
I had a word on 26 November with the outgoing Director of the Paris office of the Hong Kong Trade Development Council, Robin Chiu, about the French Government's measures. On the nature of the limit applied by the French Government, Chiu was emphatic that, contrary to des Longchamps' assertion, imports of Hong Kong watches were limited to 5.5 million units (not francs). have now checked with the Journal Officiel of 23 October and see that he is right. I enclose a copy of the relevant Avis.
2
My apologies for misleading you in my earlier letter.
3. Chiu said that the HKTDC were at present finding it difficult to discuss any bilateral trade matters with the French Government. He had however had a conversation with the Ministry · of External Trade (the DREE) about the new limit on watch imports. The DREE had apparently told him that Hong Kong should be grateful for having been accorded a "contingent" as large as 5.5 million units. The French watch making industry had asked for a quota as low as 2-3 million units. According to Chiu, DREE officials had then drawn a specific link between future con- tracts for Stage 2 of the Hong Kong Mass Transit Railway (MTR) and future QR's on Hong Kong quartz watches. He claimed that it had been made clear to him that if there were no contracts for French companies, the next limit on watch imports would be significantly lower. In answer to my question, Chiu said that
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/ne