CODE 18-77
Reference.................................
Delta should take to deal with the problem. The matter is fairly pressing for Delta as I have received confirmation from BTC
Hong Kong that the order for 11 KV cable will go to competitive tender at the end of this month or early next and will be awarded at the end of May or early June.
6.
+
The case outlined above is, of course, part of a wider problem concerning our trading relations with South Africa which, following the outcome of the referendum, we are likely to be pressed by UK industry to address sooner rather than later. To take one example, import surcharges were introduced in August 1988 at a time when the South African economy was under siege, the balance of payments was in deficit and there was concern about the exposure by British banks to South African debt. None of these considerations applies today and although the surcharges have been reduced in the last 2 budgets, and there is a commitment to abolish them entirely, many British consumer goods, including certain food items, remain subject to a 40% surcharge. Post are also receiving an increasing number of enquiries from British exporters investigating the South African market for the first time about the prospects for goods that are subject to import control or prohibition; a recent example being second-hand commercial vehicles. I therefore believe we have reached a stage where we must consider what steps might be taken through GATT to combat the adverse effect the high level of protection in South Africa is having on British trading interests. I should be grateful for your comments on this.
Heith Melville
K MELVILLE