MMB Oll
에
REC.
10 February 1993
O FEB 1933
Bowen Leung Esq Government House
Foreign &
Y Commonwealth
Office
てし
London SWIA 2AH
Telephone: 071-
270 2647
BY FAX
Dear Bowen.
TEXTILE TRANSHIPMENT
1.
Two recent reports from Washington (further copies enclosed) have mentioned that the Commerce Secretary Barbara Franklin, during her recent visit to China and Hong Kong, pressed the Governor on the problem of textile transhipment and that the Governor promised additional enforcement efforts. We note that Hong Kong telno 2552, which reported meetings between the Governor and a number of American visitors, including Franklin, does not mention whether this issue was discussed.
2.
I understand that the problem is essentially one of fraudulent origin marking on Chinese textiles and clothing shipped through Hong Kong. However, a recent article in the Far Eastern Economic Review (copy enclosed) suggested that other methods were also being adopted to avoid MFA quotas such as misdeclaration of prices or fibre content. The article quoted the head of the US Custom Service in Hong Kong as putting a figure of US $2 bn on illegal Chinese exports to the US. As this is just over half of the value of legitimate Chinese textile and clothing exports to the US, it is easy to understand the Americans' concern.
3. If the article in Far Eastern Economic Review is accurate, it suggests that this is a serious problem which could affect Hong Kong's trade relations with the US. It would be very useful if you could provide us with some further background on this issue, including whether you have provided additional enforcement and also a line for the Embassy in Washington to take if this is raised again by their US contacts.
You ever
PF Ricketts
Hong Kong Department
Zelter
cc: S D Pattison Esq, Washington
tex.ship.ADM
SLM