12230
G.F. 323
CONFIDENTIAL
-3.
terms Japan still dominates the former.
11.
In forwarding the Australian note requesting restraint, the British High Commission informed us that the Australians had said that "for the twelve months ended 30th September, 1967 Hong Kong had 70% of the trade", and that the Australians were also discussing the matter with Japan, "who are significant suppliers to the market". The Department is seeking further information as to whether this discussion is taking place under the terms of the C.T.A. or the Australian/Japanese Trade Agreement.
Conclusion
12.
Pending a response from the Australian Government to the Hong Kong note, further comment would have to be speculative. Because this sector of the trade is relatively small the Department proposes to take no action at present to place it under export licensing; but export declarations will be kept under review and if there are indications of a speculative surge developing the Department will consult the Board promptly for advice on appro- priate measures.
13.
If and when the Australian Government submits an accept- able request for consultations, members' advice will be sought on Hong Kong's negotiating posture. In the meantime the Department will take steps to obtain more comprehensive and reliable data.
14.
Members are invited to note this memorandum and to advise whether they agree with the Department's proposed course of action.
Encls:
Commerce and Industry Department, 8th February, 1968.
CONFIDENTIAL
No comments yet.
Private notes are available after approval.