TNAG-1054-FCO40-1304-Trade-relations-between-Hong-Kong-and-the-UK-1981 — Page 141

SECRETARY OF STATE FOR TRADE OFFICE MINUTE NUMBER: 56281

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THE SECRETARY OF STATE'S MEETING WITH REPRESENTATIVES OF THE RADIO INDUSTRIES COUNCIL AND THE CONSUMER ELECTRONICS SECTOR WORKING PARTY: 19 MARCH 1981

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Mr Sanderson, Union Representative

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The meeting was requested by the Electronic Consumer Goods SWP to discuss imports of television sets from Thailand and Hong Kong.

Mr Griffiths said that the position had improved a little since the meeting had been requested but the principle of VRAs seemed to be at risk. Even if the situation with Thailand was resolved, it was expected that there would be problems with Hong Kong. The time had come to consider an alternative form of protecting the industry than by VRAS.

The delegation stressed that it was vital to protect the colour TV market. But if ground was lost over monochrome television, it would be impossible to get agreements for colour later. The industry's tactic of gradually abandoning monochrome and concentrating on colour would have been self-defeating. Mr Sanderson added that action over monochrome television was not unimportant: two companies depended on them and Thorn had proved that their costs would rise if these two companies disappeared.

Thailand

Ir Griffiths said that the United Kingdom wanted a ceiling of 30,000 sets but the final reply from the Association of Thai Industries indicated that they were only prepared to limit their exports in 1981 to 240,000 sets. He could not countenance a situation where the Thais cut the United Kingdom market in two and they started sending more than the whole of the Taiwan market share. If the United Kingdom had not got VRAS with the other countries the Thais could not export to us because their products would be too highly priced. (Mr Rowe said that any evidence of these countries' costs that Mr Sutton could send him would be useful.)

Hr Griffiths outlined several courses of possible action. Straight punitive action against Thailand would provide a salutary lesson for other countries. John Nott had indicated that if the VRAS failed, we could approach the EC. He preferred to see the United Kingdom take action itself as had happened with Korea and Taivan some years ago.

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