TNAG-0175-FCO40-211-Visit-to-UK-by-David-Jordan--Deputy-Director-of-Department-o-1969 — Page 33

CONSULAR ENDORSEMENTS

8 ITALY Italian Cononlar Endorsementõ

The Italians only require Certificates of Origin on certain general imports, and on all imports from Hong Kong, Singapore and Macao. For obvious reasons Hong Kong does not object to this system, but she is concerned about the high, and recently increased, charges made by the Italians for Consular endorsements of these Certificates.

2. Unofficial soundings in Rome have produced no results, and we are now awaiting Hong Kong's comments on a Note Verbal, which we hope to submit to the Italians in the new year.

3.

The present procedure is that there are three unofficial bodies in Hong Kong entitled to issue Certificates of Origin; as a means of doing away with the need for Consular endorsements Hong Kong has tentatively proposed that only the Department of Commerce and Industry be allowed to issue such certificates.

4. It is not clear whether Hong Kong will achieve anything more than simply making themselves heard, but protest is quite possibly the main object of their action, in order that they can never be accused of having accepted the situation without question.

UNITED ARAB REPUBLIC

5.

Here also Hong Kong is concerned about the high level of charges imposed by the U.A. R. for consular endorsement. There is a further complication here in that endorsements are only spasmodically required; also Hong Kong thinks that there is a discrepency between the charges authorised by Cairo and those charged in Hong Kong. The Commercial Section to our Embassy in Cairo is at present investigating this matter, which is still in its formative stages. Hong Kong have been thinking in terms of applying Article VIII of G. A. T. T., but further action will depend on the outcome of our enquiries in Cairo.

6.

G.A.

QUOTA ARRANGEMENTS WITH CHANNEL ISLANDS AND ISLE OF MAN

Hong Kong have recently enquired whether the Isle of Man and the Channel Islands fall within quota agreements entered into by the U.K. This enquiry is not inspired by any intention of using these islands as a back pool for imports, mainly of cotton textiles, to this country but simply so that imports destined for the islands can be deducted from the U.K. quota.

7.

Customs and Excise are at present investigating the position and hope to reach a decision on this matter within the next week.

8.

The Channel Islands' position in terms of international agreements generally is that it is European_7 territory for whose external affairs H.M.G. is responsible. An agreement entered into by H. M.G. on behalf of the U.K. only does not, merely for that reason, apply to Jersey.

9. The Isle of Man is treated for exchange control purposes as if it were part of the U.K., but the island government controls its own finances and taxes, including customs matters. By virtue of a customs agreement between the Islands customs are a dministered by H. M. Customs & Excise in common with those of the U.K. and an agreed stare of the total is paid into the I. of Man Exchequer. Beyond that the position regarding international commercial agreements is the same as for the Channel Islands.