TNAG-0155-FCO40-191-Import-restrictions-by-Algeria-1969 — Page 24

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7 January 1968

19.

کی

Dear Forter,

Thank you for your letter of 18 November under reference UR/TIC.711/3/1 about Algerian tariff discrimination against Honz Hon.

I an afriad the position remains that the Algerians are still applying the "general" tariff rate against Hong Kong and there is no indication that there is any intention to alter the position.

My Japanese colleague here (Japan's exports are similarly affected by these measures) tells me that the Japanese have maintained more or less constant diplomatic pre sure on the Algerians to rescind this measure but with no result hitherto. His view is that one cannot invoke GATT against the Algerians for they are not members. I am frankly sceptical about the usefulness of making representations to the Algerian authoritie about this matter though I do not see that it could dẹ any harm. Certainly one should, I thin, keep the issue alive, for Algeria's domestic production of consumer goods is still quite low and ju would have a sorthwhile market here if only you were allowed in on m.f.n. terms,

However, your line of argument that Algeria enjoys a favourable Sterling trade bice is unlikely to impress the Algerians. Certainly Algeria enjoys a favourable balance with the .K. (though this is due largely to her exports of liquid methane which the Algerians do not recognise as being part of normal commercial exchange), but I am sure they would reject any suggestion that a favourable trade balance with one part of the Sterling area justifies running an unfavourable balance with another part. I think the beat one can do is to continue to represent from time to time that you object to this discriminatio and hope that in time a different climate of opinion will prevail and the discrimination against you will be lifted. I am sorry to sound so discouraging but optimism at this juncture would be unre listic.

I am copying this letter to W.S. Carter at Foreign and Commonwealth Office.

Yours sincerely,

2. Porter, Esq.,

(Stanley Relton)

First Secretary (Commercial)

Commerce & Industry Department,

Fire Brigade Building, Hong Kong.

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