RESTRICTED

044762

889

MDLIAN

THE AMERICANS.

5. WE RECOMMEND, HOWEVER, THAT ONCE THE LIST IS AVAILABLE, WE AND HKETO CON ADVICE FROM HKG) CONTACT THE ADMINISTRATION AGAIN, BUILDING ON THE AGREEMENT ALREADY ESTABLISHED THAT DAMAGE TO HONG KONG SHOULD BE MINIMISED, TO POINT TO SECTORS/PRODUCTS PROPOSED FOR RETALIATION WHICH WOULD BEAR MOST HEAVILY ON HONG KONG EXPORTS. WE CAN DO THIS PRIVATELY AND, IF HONG KONG AGREE, ON THE PUBLIC RECORD FOR GREATEST EFFECT. SINCE WE WILL MERELY BE REACTING TO PUBLISHED US PROPOSALS, THERE SHOULD BE LESS DANGER OF ADVERSE CHINESE REACTION. US IMPORTERS AND DISTRIBUTORS WILL BE LOBBYING AGAINST ITEMS ON THE LIST AT THE SAME TIME.

6.

LOBBYING AT THAT STAGE IS NOT (NOT) TOO LATE: THE ADMINISTRATION'S USUAL PRACTICE IS TO PROPOSE RETALIATION IN FAR MORE SECTORS THAN IS NECESSARY TO EQUAL THE TRADE LOSS, IN THE KNOWLEDGE THAT THE PROPOSALS WILL BE WHITTLED DOWN BY THE PUBLIC COMMENT.

RENWICK

YYYY

DISTRIBUTION

69

ΜΑΙΝ

68

LIMITED

NEWS D

HKD

PS

FED

NAD

PS/LORD CAITHNESS

PS/PUS

ERD

SIR J COLES

JOINT DIRECTORATE

MR BAYNE

EAPD/ODA

MR MILES

ESED

MR BURNS

RAD

ADDITIONAL

1

DTI/ASH HSE

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