R

Protectionism

CONFIDENTIAL

Background

1.

Jenkins Bill, originally aimed at reducing US textile

imports from Fast East producers, including Hong Kong, passed

House of Representatives on 3 December, having been amended by

Sena te last mon th to include new restrictions on non-textile

products including footwear and mineral imports.

2.

House vote was 255-161, and thus fell short of

two-thirds majority needed to override a Presidential veto.

3.

US legislation?

Administration (including the President) have many times

expressed their opposition, both in public and in private, to

protectionist

in response to Most recently

rece

Mr Brittan

expressed HMG's and Hong Kong's concern about impact on Kong economy of the (unamended) Jenkins Bill during his visit

to State Dept on 30 October.

Hong

CONFIDEN TIAL

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