TNAG-1054-FCO40-1304-Trade-relations-between-Hong-Kong-and-the-UK-1981 — Page 142

T Minister for Trade said that action such as that taken in 1977 against Korea was not now practicable because the Commission would insi it was withdrawn. If the United Kingdom made threats which it was later forced to retract, it looked foolish. Moreover, all the countries who had signed agreements would see our bluff called. Unfortunately the Commission was not minded to take on all the ASEAN countries together on our behalf.

The Secretary of State said that he could see the attraction of taking Article XIX action (although this would require prior approval by the Community, which was unlikely to be forthcoming). But he felt this should be held as a threat in reserve. As we exported twice as much to Thailand as they sent to us, the United Kingdom would be vulnerable to retaliation. Mr Neal added that the Commission did not recognise industry to industry agreement and would not accept a case against Thailand that depended on the fact that all other countries had signed agreements with us.

The Minister for Trade said that the Government believed that VRAS offered the best course. Recent changes in the Thai Government had made it difficult to know who one could talk to; but the Post reported that the new Minister was more reasonable. His view therefore was that a major assault must be taken with Thailand to get a VRA. The industry would have to start talking again and the Ambassador would be called in. The Government would also see what initiatives it could take in Bangkok.

Mr Griffiths said that if punitive action was not possible he was prepared to have another attempt at agreeing a VRA. Mr Sutton added that discussions should take place in the United Kingdom next time where we could insist that the meeting did not break up until a decision was reached. Mr Griffiths wished to know if there was anything further that the Government could offer: a letter from HMG to the Thai Government backing the talks (as had happened with Japan) would be useful. Mr Sutton requested representatives from both Governments to be present at the meeting. Mr Neal said that this could only be done unofficially to prevent the Commission from objecting.

Hong Kong

Mr Griffiths said Hong Kong showed no desire to co-operate at all. The VRA had a limited life and it had been hoped it would last long enough for the industry to reconstruct, but this process had been delayed. If the Government believed in a consumer electronics industry it needed protection against Hong Kong imports especially in the period before the PAL licence was taken off. Mr Sutton said that in 1979 the figures for monochrome television imports from Not

Hong Kong had been 7,000; in 1980 they were 28,000, and this year ture they could be 100,000. If Hong Kong sent in 100,000 sets there would

be no room for Thai sets without the United Kingdom producers losing ground. Agreements could only be imposed upon them.

fir Parkinson said we would talk to the Hong Kong Government on this matter. Mr Griffiths said he was not hopeful that talks with Hong Kong would be effective but again agreed to try when the Government had spoken to the Hong Kong authorities.

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