CONFIDENTIAL
Foreign and Commonwealth Office London SW1A 2AH
S
D Twyford Esq
Export Credits Guarantee Department
Aldermanbury House
Aldermanbury
LONDON
FC2P 2LL
Dear
Dan
Telephone 01- 233-3518
wp
Your reference
Our reference
Date
13 April 1982
OECD EXPORT CREDIT CONSENSUS: RECLASSIFICATION
Dependent Territories
1. In his letter to you of today Colin McLean said that the FOO was broadly content with your proposed negotiating package (your letter of 1 April to Carey). However, the proposed re-classification exercise causes us some difficulties in so far as it affects some of our Dependent Territories.
2. Our Hong Kong Lepartment agree strongly with Miss Neville-Rolfe's arguments for leaving Hong Kong in Category II, and believe that up-grading now would be particularly untimely in view of Hong Kong's impending MFA negotiations with the EC, and the Falklands crisis.
3. Our Southern European Department have also noted that Gibraltar would also be promoted to categoryIand comment that the timing is unfortunate in view of the Territory's uncertain economic future in the light of the decision to close the Naval Dockyard which provides the bulk of employment there.
4. The Falklands is clearly a unique case on which I am seeking guidance.
5. We agreed that there was a strong disposition within the Consensus to treat classification on a purely technical basis without reference to political factors, and we noted that the consensus neutrals had vetoed recent EC proposals in the Consensus to up-grade the Soviet Union from Category II to Category I as a result of the declaration of martial law in Poland. You also pointed out that in the past Dependent Territories were treated the same as the mother countries and that if this treatment were in force now both Gibraltar and Hong Kong would already be in Category I.
6. Despite all these factors do you believe there is any chance of our EC partners agreeing that Hong Kong and Gibraltar should be exempted from the re-classification exercise?
cc.
J Carey Esq - Treasury
Miss M Neville-Rolfe, PEP, DOT
HKGD
Mr Williamson
Mr Culver SEU ilm initian
Yous mach
M Gowlland
Trade Relations and Exports Department
CONFIDENTIAL
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