TNAG-0384-FCO40-430-Trade-relations-between-Hong-Kong-and-the-EEC-1973 — Page 86

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THE TWO BUS COMPANIES ARE THE ONLY BUYERS OF BRITISH BUSES IN HONG KONG. OVER THE PAST THREE FINANCIAL YEARS THEY HAVE BOUGHT 487 BUSES FROM BRITAIN AT A PROBABLE COST OF ABOUT POUNDS STERLING 5 MILLION. BOTH ARE NOW WORKING OUT MAJOR RE-EQUIPMENT PROGRAMMES, ALL OTHER BUS OPERATORS IN HONG KONG APPEAR TO BUY EITHER JAPANESE OR GERMAN.

6. THE ABOVE INFORMATION IS PROVIDED FOR THE RECORD AND BECAUSE YOU ASKED FOR IT. I HAVE NOT YET SEEN THE RECORD OF THE MEETING AT WHICH THIS POINT WAS RAISED, THE CONTEXT WAS THAT I SAID THAT IF HMG DISCRIMINATED AGAINST HONG KONG OVER TEXTILES AND FOOTWEAR WE SHOULD BE PREPARED FOR SOMEONE IN HONG KONG TO ENQUIRE WHY HONG KONG STILL GAVE PREFERENCES TO THE UK. I DID NOT INTEND TO IMPLY A THREAT, OR IN ANY WAY PREJUDGE HOW STRONGLY OPINION IN HONG KONG WOULD LINK THE CONTINUANCE OF THESE PREFERENCES WITH THE EEC/GSP ISSUE, OR WHAT VIEW THE HONG KONG GOVERNMENT WOULD TAKE,

7. 1 ENTIRELY AGREE WITH THE LINE TAKEN IN HONG KONG'S TELEGRAM TO THE HONG KONG COMMISSIONER NUMBER 282 OF 11 SEPTEMBER. IF YOU HAVE NOT SEEN THIS PLEASE OBTAIN A COPY.

FCO PASS HONGAID LONDON

MACLEHOSE

EUROPEAN ECONOMIC DISTRIBUTION

FID

HKIOD

FED

TRED

ADDITIONAL DISTRIBUTION FRAME

COPIES TO:

HONG KONG GOVT OFFICE

6 GRAFTON STREET

2

CONFIDENTIAL