TNAG-0759-FCO40-963-Manufacture-and-storage-of-explosives-in-Hong-Kong-1978 — Page 102

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The Commissioner does not consider, moreover, that he will be in a position to make available very much additional storage space, at least until the pattern of use has changed significantly. There will thus be practical restraints on the growth of exports in the short term.

I must, however, emphasize that these restraints are practical and that they do not derive from any policy to restrain exports, except where this would be necessary to maintain supplies to the local market. It is certainly not the Government's present policy to encourage exports per se. As I shall explain later our interest is entirely based on safety but, at the same time, and provided that that interest is not prejudiced thereby, it is equally not our policy to restrain exports.

As you know, I have not myself been personally involved in the details of the earlier negotiations. But Graham Barnes has been involved throughout and he is surprised that there should be any doubt or misunderstanding on Nobel's part about our position on exports and general aims as explained above. Certainly, in 1974 and 1975 Graham can recall having had several discussions with Nobel's representatives on these very points, and Government's position has not moved at all since then. In particular, he recalls that one of the first questions that Government representatives asked Nobel's (and also Du Pont) was whether they would wish to be able to export and that the answer given was that, although the plant was primarily aimed at the local market, it was felt necessary to allow exports. His record on file of one of these discussions (with Harper, Riley and my predecessor on 11th November 1975) reads as follows:

"12.

In reply to questions about marketing and control they (i.e. Nobel's representatives) said :

(a)

(b)

(c)

they did not think there was a market in South-East Asia for the products of two new plants in Hong Kong; most countries already had their own plant or would have one shortly;

they would wish to export any surplus for which they believe there was a sufficient market; they would probably ship in their own ships which called at Hong Kong every six months;

they anticipated the need for storage of about 100 tons for the local market, and 50 tons for exports;

/(a)