CONFIDENTIAL
CR/EIC.711/3/1
500 6/1
N. Stewart
18th November
8
1/2
(wear leiton),
I refer to the correspondence between Robinson and Chạn on the subject of the Algerian application of the general tariff rate to imports from Hong Kong, resting with dobinson's letter of 29th February, 1968. Not surprisingly, the position as described in dobinson's letter appears to have had a most deleterious effect upon Hong Kong's exports to Algeria, which were valued at only HK$258,000 (about £18,000) during the first half of 1968 compared to HK$5.7 million ($400,000) durin; the corresponding period of the previous year.
2.
On the assumption ħat the position is still as described in Robinson's letter, and now that diplomatic relations have been resumed, we are considering the possibility of further representations against this discriminatory and un-GATTable action. Although in view of Algeria's generally stringent import regine the lifting of the discriminatory measure would probably have little affect on our exports, we would nevertheless like to re-establish the principle that we are entitled to m.f.. rates, both to remove a dangerous precedent and also against the day the market may open up again.
3.
Before going any further, I should be most grateful for your confirmation that the position is indeed unchanged and for your comments upon the wisdom and possible usefulness of further representations at the present time. mecalling that the original reason given for the Algerian action was imbalance of trɛde, one possible line of argument is that Algeria enjoys a favourable sterling trade balance (this is true, is it not ?) and that any imbalance with Hong Kong shoull be viewed in that context. This is slightly dangerous ground for us, because we shy away from any suggestion of bilateral trade balancing which in our circumstances makes no kind of sense at all. But if you think thi... might be worth a try, and London would agree, we could have a shot at it.
I am copying this letter to Carter in the Foreign and Commonwealth Office (together with a copy of Robinson's letter of 29th February, 1966) and Jones in our Geneva Office.
4.
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1x
(fours sinqerely),
?
3
(«. Porter)
Mr. S. delton,
British Embassy, Commercial Section, Edifice Cassiopee, Batiment B,.
7, Chemin des Glycines,
1
B.P. 25, Algiers,
Algeria.
c.c. Mr. W... Carter, Foreign and Commonwealth
Office (with a copy of Robinson's letter of 29/2/68).
Mr. D.J.C. Jones, Geneva Office.
Mr. D.. Sellers, London office.
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