TNAG-0170-FCO40-206-British-Trade-Commissioner-1969 — Page 66

HKK 21/9

Сори

Mr. Carter

XX

At (1) on this file Hong Kong tells us that they are trying to determine the background to the sections in the two Public Transport Services Ordinances which require the Companies to use buses of British or Commonwealth manufacture. The con- nection is now clear with the previous correspon- dence Leylands which I will have extracted from Tide file HKK 6/548/3.

2. We have done some research with the Library and Records Department but all that emerges by way of connection with Commonwealth preference is that the old Empire Preference Ordinance (now the Commonwealth Preference Ordinance) imposed on non- Commonwealth vehicles a 20% addition to the first registration fee because "the conditions of Hong Kong gave few openings for reciprocating in the way of preference".

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3. It may be true enough that these sections were included in the Public Transport Ordinances for much the same reason by way of return for Commonwealth preference but supposing that Hong Kong were considering the repeal of those sections I doubt whether this will be a good enough reason to advance for not doing so. I have spoken to Export Promotion Department and to Trade Policy Department where Mr. Smith, in particular, has some previous knowledge of the subject of Common- wealth preference. I have little hope that we shall discover any good reason for retaining these sections, valuable as they are to Leylands.

4. I think we must move fast. Hong Kong sent a telegram of reminder on 23 April and we an interim reply on the same date. If we do not give them something to go on soon it is possible that they will repeal these provisions without further ado.

5. I propose to reply making as much as we can of Commonwealth preference and showing the draft to Export Promotion and Trade Policy Departments.

Copy to

File HKK 6/548/3

(H. H. Stewart)

5 May, 1969