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CONFIDENTIAL
SAVIKO DESPATCH
FIXX 6/312/1
From the secretary of state for Foreign and Commonwealth Affairs
To the Governor, NONG KONG
20 February, 1969
No. 84
GATT
French Japort Restrictions
We refer to the memerandus on this subject from Counsellor (Hong Kong Affairs) Jeŋeva, addressed to your Director of Commerce and Industry and copied to us.
2. After consultation with the Board of Trade we agres that in the circumstances the best first move towards some sert of open challenge to the French discriminatory quotas against Hong Kong would be by your raising the subject at the next round of annual bilateral talks between yourselves and French officials which we understand is likely to take place towards the end of this month,
3. It is not possible at this stage to decide which would be the best of the pessibilities considered by Mr. Jones for further mitilateral discussion of this matter. However, if, in the course of bilateral discus- sions, you find it to your advantage, you may indicate to the French officials the possibility that Her Majesty's Government will be forced to pursue the question of con- tinuing French restrictions against Hong Kong, probably in some GATT context.
Certainly there are difficulties in the way of treating the Group on residual restrictions of the Committee of Trade and Development as a suitable forum at which to raise the French restrictions. It is not by my nesna clear how active will be French participation in this Group's examination of restrictions affecting the developing countries and whether this will be such that the French would be prepared to have their restrictions examined, particularly when, as we see, they have not notified the Group of the restrictions they are applying to Hong Kong.
LABI
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