Miss A J Brimelow CREL

Department of Trade

1 Victoria St

SWI

Dea

Ass

RESTRICTED

MER 121/12

4 DEC 1981

British Embassy Paris

DESK OPPOS

INDEX

اخر منكم

muth Taken

No

8112

PED Pliz

November 1981

WGdz

PA

"J26.11

जि

See 16

QUANTITIVE RESTRICTIONS: FRENCH ACTION AGAINST QUARTZ WATCHES FROM HONG KONG

The

19

113

Brian Bender wrote to you on 29 November about the French Government's decision to impose restrictions on imports of Quartz watches from Hong Kong into France. The subject was also briefly mentioned in paragraph 3 of Len Appleyard's letter of 30 October - NR. to Peter Vereker in the FCO asking "How protectionist is the new French Government?".

2. I consulted des Longchamps, who covers multilateral trade questions in the Ministry of Industry, about the background to the French Government's decision. After checking with his customs experts, des Longchamps confirmed that there was a longstanding residual "contingent" on imports of these watches from Hong Kong but that in recent years no quantitativ@imit had been applied to it. The existence of this "contingent", he argued, meant that the French Government had the right whenever it wished to apply a quantitative limit. In the case of Quartz watches from Hong Kong, a ceiling of 5.5 million francs (not, as I had previously understood, 5.5 million units) had been imposed with effect from

In answer to 1 October 1981 and would last until 31 December 1982. my question, des Longchamps said that the French Government did not consider that it had any requirement to notify the Commission when it decided to alter the quantitative limits applied to "contingents" of this nature.

3.

Des Longchamps added that he thought I might wish to know that the French Government would shortly be asking for Article 115 action on imports of Hong Kong Quartz watches, with a view to

RESTRICTED

/obtaining

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