TNAG-0144-FCO40-180-Exports-of-textiles-to-United-States-of-America-1969 — Page 66

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Mr. Stewart

Hong Kong Dept.

Reference....

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RECEIVED IN REGISTRY No.51 -5 MAY 1969

HK16/304/1

Visit of Mr. Stans to Hong Kong

You asked for my opinion on possible topics

Mconcerning security export controls which Mr. Stans

m

HKD

таб

may raise in Hong Kong.

2. There is an obvious danger of strategic goods reaching China from Japan and Western Europe by way of Hong Kong. The Colonial authorities however maintain customs controls which, as far as we can see, are reasonably effective in preventing the export from Hong Kong of goods embargoed by COCOM. Certainly we have not had any complaint from the Americans that Hong Kong is leaky.

3. Apart from the COCOM embargo however the Americans also attempt to apply a virtually total trade embargo against China and maintain an elaborate organisation to try to prevent goods of U.S. origin reaching China. They have a large office engaged on this work in Hong Kong.

4. It is possible that Mr. Stans may attempt to raise:

5.

(a) the effectiveness of Hong Kong's control

of goods embargoed by COCOM

(b) whether the Hong Kong authorities would

cooperate with the Americans in preventing goods of U.S. origin from reaching China.

My advice would be that Hong Kong should refuse to discuss (a) beyond offering to investigate any alleged case of evasion. As far as (b) is concerned the Hong Kong authorities should not be allowed to give any help, open or covert, since the American policy is one with which we disagree. We are also against the implied principle of extn-territorial jurisdiction which their policy involves.

Yeh Rishton

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M.W.

Mi Gamitare

W.L. M. lem

(W.L. St. Clair)

Trade Policy Department

29 April, 1969.

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