Mr Gordon Siu
Secretary for Economic Services Economic Services Branch
Central Government Offices Lower Albert Road
Hong Kong
BY FAX
071 215 5329
NL 4/07
6 May 1993
US ANTI-TRUST NOTIFICATION: PROPOSED ACQUISITION OF MAJORITY SHARE IN G.M. PFAFF AG (GERMANY) BY SEMI-TECH (GLOBAL) CO. LTD. (HONG KONG)
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We have received a notification from the US Embassy in London
the US Federal Trade Commission (FTC)
(FTC) has commenced
investigation of the proposed acquisition of a majority share in
G.M. Pfaff AG, a German company, by Semi-Tech (Global) Co. Ltd,
a Hong Kong company. I enclose a copy of this notification, for your information.
We have been notified of this investigation in accordance with
the 1986 OECD Recommendation on the Notification of Restrictive
Business Practices Investigations. The Recommendation provides for arrangements for consultation and notification of antitrust
actions by one Member State of the OECD involving the interests
of another Member State.
You may be aware that the UK Government object to the unwarranted
assertion of extraterritorial jurisdiction by other countries,
in particular the US. The US anti-trust authorities can, for
example, seek to exercise jurisdiction outside its territory merely because activities may have an "effect" within the US
("the effects doctrine"). While there does not appear be a direct UK interest in this case since no UK companies appear to