TNAG-1054-FCO40-1304-Trade-relations-between-Hong-Kong-and-the-UK-1981 — Page 129

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FROM THE

MINISTER OF STATE

FOR INDUSTRY AND

INFORMATION TECHNOLOGY

Kenneth Baker MP

Peter Blaker Esq MP Minister of State

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DEPARTMENT OF INDUSTRY

ASHDOWN HOUSE

123 VICTORIA STREET

LONDON SW1E 6RB

TELEPHONE

Mr. Willian som

Foreign and Commonwealth HKK 121/10

Office

London

SW1A 2AH

Dr.

Vilis

DIRECT LINE

1-212 6401

SWITCHBOARD 01-212 7676

J22.4.

RECEN IN ALGISTRY NO. 51

27 APR 1931

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16 April 1981

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121/6 (16) 1982

Thank you for your helpful advice about the way I should raise the subject of consumer electronic imports during my forthcoming visit to Hong Kong.

I am well aware of the recent progress of British Industry in Hong Kong and wish to foster good relations with, and the confidence of, the Hong Kong Government. However, I am sure you will also understand the damage being done to the UK consumer electronics industry which we need as an essential element of our plans to exploit information technology. It is now hard hit by imports: 700 jobs lost last year out of a total of 40,000.

Both John Biffen and I have undertaken to support our industry in negotiating VRAS which we see as the only available solution to sustaining the essential capacity needed for future products while the industry withdraws from those markets in which it can no longer compete. Colour TV, now protected by the PAL licenges, is the most important product for the long term future of the industry although our immediate concern is with portable monochrome TVs. Hong Kong is of course a major potential source of both products and we need the co-operation of the Hong Kong authorities in maintaining the effectiveness of existing VRAS with the producers in other countries.

Nevertheless in my discussions I will certainly place emphasis on achieving greater co-operation with the Hong Kong authorities.

Zamies

Миль

KENNETH BAKER