TNAG-0386-FCO40-432-Exports-of-non-cotton-textiles-from-Hong-Kong-to-the-EEC-1973 — Page 156

IMMEDIATE

EN CLAIR

FM BONN 6218002

UNCLASSIFIED

[NEUTRAL]

1973

TOP COPY

TO IMMEDIATE HONG KONG TELNO 1 OF 2 FEBRUARY, INFO PRIORITY BRUSSELS FOR DODGE (HONG KONG OFFICE), FCO, UKREP BRUSSELS, HONG KONG GOVERNMENT OFFICE, LONDON,

(19)

YOURTEL NO 132 TO FCO, PARAGRAPH 4

RESTRAINTS ON EXPORTS OF

A

POLYESTER/COTTON TEXTILES TO THE FEDERAL REPUBLIC.

1. MISTER (ECONOMIC) HAS THIS AFTERNOON RECEIVED A TELEX MESSAGE FROM THE FOREIGN TRADE ASSOCIATION OF THE GERMAN RETAIL

TRADE IN THE FOLLOWING TERMS

BEGINS

GERMAN TRADE HAS TODAY BEEN CONFRONTED BY EXPORT RESTRICTIONS IMPOSED AUTONOMOUSLY AND WITHOUT WARNING BY HONG KONG. THE

COMPLETE RANGE OF HONG KONG'S EXPORTS TO THE FEDERAL REPUBLIC

IN COODS CONSISTING OF MIXTURES OF POLYESTER AND COTTON IS

LIMITED WITH IMMEDIATE EFFECT. UNTIL EXPORT QUOTAS FOR INDIVIDUAL

HONG KONG EXPORTERS HAVE BEEN WORKED OUT, THE ISSUE OF EXPORT

LICENCES HAS BEEN SUSPENDED, AS A RESULT THERE IS A DANGER

THAT FOR 4 WEEKS ALL SHIPMENTS FROM HONG KONG WILL COME TO A

STANDSTILL.

THIS ABNORMAL STEP BY THE HONG KONG ADM!#!] STRATION FORCES ME TO

ASK YOU TO MAKE AN APPROACH TO THAT ADMINISTRATION. THE GERMAH

TRADE PROTESTO AGAINST THIS ONE-SIDED INTERFERENCE IN BUSINESS

CONNECTIONS BETWEEN INTERNATIONAL TRADING PARTNERS, CONNECTIONS WHICH MOREOVER, ARE PROTECTED BY INTERNATIONAL COMMERCIAL LAW. THIS IS NOT THE FIRST TIME THAT ONE-SIDED MEASURES BY THE HONG

KONG ECONOMIC ADMINISTRATION HAVE GROSSLY DISRECARDED THE

PROTECTION WHICH THE IMPORTER ENJOYS IN WORLD MARKETS.

و

I WOULD FURTHER COMMENT THAT GERMAN TRADING INTERESTS, AND ESPECIALLY THE DEPARTMENT STORES, MAIL ORDER HOUSES AND BUYING

ASSOCIATIONS IN THE FEDERAL REPUBLIC HAVE BEEN SUBSTANTIALLY

RESPONSIBLE FOR PUILDING UP THE MARKET POSITION OF HONG KONG

EXPORTS IN THE CONSUMER GOODS SECTOR, HENCE IT SEEMS ALL THE

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