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17.
18.
links with relevant industial bodies. He also pointed out
that many foreigners in China (especially the Japanese) were very careful about protecting their own technology, partly because workers were not up to dealing with it, and partly because much technology was COCOM restricted.
CS asked whether more information on China's upgrading of
textile products (para 12 of the paper) and the implications for Hong Kong could be obtained.
Action: DS (ES) 2
CS also asked whether it was true that China had already used up this year's export quotas to the US. STI said that 24 categories had already been embargoed by the US as
full. These included many "sensitive" categories. The Chinese would seek to have the embargoes lifted but in the meantime would seek to dump in the domestic market and in Hong Kong. CS asked whether the quota system was fully understood. SDA and DS(ES)2 remarked that problems arose
from decentralisation and the size of the country. STI
said he believed that the relevant Ministries understood
the system. Problems arose because the export licence system was a mess and there were poor security features in the paperwork. Some documents had undoubtedly been forged. Investigation of complaints from the US had shown that, of the 17 cases checked so far, all had been of
China origin. But the Commercial Crimes Bureau was investigating further to see whether there had been any evasion of or breaking of Hong Kong laws. PA mentioned
that some Chinese officials had criticised Hong Kong's
role. He had told NCNA that we would be willing to investigate any cases if evidence could be provided. Nothing more had been heard.
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