TNAG-0141-FCO40-177-Hong-Kong-concession--in-Kennedy-Round--on-unmanufactured-to-1969 — Page 13

जयने

THE HIGH COMMISSION OF INDIA

Telephone: TEMple Bar 8484.

Extension........

Telegrams: HICOMIND, ESTRAND, LONDON.

Cables: HICOMIND, LONDON,

N.K. Bharadwaj

First Secretary (Commercial)

Mr. Hurd

Hurdak

Reg.

and Jil12

Draft Letter to Miss

Muskelt pl.

Dear Mr. McKelvie,

(24)

Please quote the undermentioned reference number:-

T.40.1.210

and address any further communications to :-

Commerce

INDIA HOUSE,

DEPARTMENT,

ALDWYCH,

LONDON, W.C.2.

November 26, 1969.

Reed. In

JMcK12169

During

This is in continuation of our meeting this morning. our meeting I had taken the opportunity to draw your attention to Article 11 of the U.K. India agreement of 1939 which states that India shall accord to the non-self Governing colonies preferences on the commodities which comply with the laws and statutory regulations, for the time being in force, defining empire goods for the purpose of customs duties and at the rates shown in Schedule V of the Agreement. Article 8 of the same Agreement requires the non-self governing colonies (which include Hong Kong) to accord to India any preference which may, for the time being, be accorded to any other part of the British Empire. Both the articles have exceptions relating to particular colonies, but none of them relate to Hong Kong. Hong Kong does not figure in Schedule III to the Agreement. This schedule is in respect of guaranteed margins of preference which particular colonies were required to maintain in respect of imports from India. This absence of Hong Kong from Schedule III only signifies that there is no product on which Hong Kong is required to maintain a stipulated margin of preference. Therefore, the obligation of Hong Kong as stated in Article 8 is to accord to India any preference which it may be extending to any other present or erstwhile part of the British Empire. Whatever margin of preference Hong Kong is giving to products of any Commonwealth country, therefore, becomes automatically applicable to imports from India.

From an examination of our trade statistics, we have found that the following items on which we give preference to Hong Kong are of active export interest to them:-

Exports from Hong Kong to India 1968-69

LAST

R F

NEX

REF.

PIKKE/302/1C

(1) Long pepper

(2) Nutmegs

(3) Menthol

(4) Citronella oil

(5) Anti-oxidants

(6) Weed Killing agents

(in Rupees)

Quantity

2,700 kg.

Value

7,918

644

tt

5,822

339

11

24,229

1,397 2,000 100

11

18,714

#t

38,100 4,313

A more thorough examination would reveal other items of active export interest to Hong Kong, but I presume that with the illustrations above the point is made, regarding India extending preferences to Hong Kong.

It seems that while considering the retention of the preference by Hong Kong on tobacco from Malawi only it was believed that no other Government of the Commonwealth was giving preferential treatment to Hong Kong's exports to them. From what I have said above this belief was not correct and may in the changed situation lead to reconsideration of the matters raised in our Aide Memoire of 18th June, 1969 and Her Majesty's Government's Aide Memoire of 2nd October, 1969.

Yours sincerely,

Yours

(N. K. Bharadwaj》

Mr. J.N. McKelvie,

Trade & Policy Department,

Foreign & Commonwealth Office,

London SW1.