TNAG-1054-FCO40-1304-Trade-relations-between-Hong-Kong-and-the-UK-1981 — Page 144

Mr J H N Solomon CSE 3

Reference..........

cc Mr March BTC/Hong Kong

Yes?

MONOCHROME TELEVISION FECEIVERS

We

I have seen a copy of March's letter to you of 17 March. obviously support his request for further information before taking further action.

2. There are however wider considerations.

As you no doubt know, Hong Kong has seen its textile exports severely curtailed under the MFA arrangements and the Hong Kongers still feel aggrieved at the UK's role in these negotiations.. This is a very serious matter for Hong Kong because it is still almost literally one huge textile factory.

3. Hong Kong has made vigorous efforts to diversify away from this sensitive area and traded up in the process. The Hong Kong Government. Advisory Committee on Diversification reported at the end of 1979 and Electronics features prominently in the report. We have encouraged this diversification process in view of the troubles associated with textiles. I am sure you can appreciate therefore that we would find it very difficult to support such an early intervention in the case of monochrome television receivers.

4. I take Oliver Sutton's point that one should respond quickly in these situations but I cannot help feeling that a more positive attitude toward Hong Kong would pay dividends. The Hong Kongers are persistent in their claims that UK industry should invest in collaborative ventures in Hong Kong and whilst we are conscious of the argument that jobs are being exported other developed countries invest more readily in Hong Kong. I fear that the Hong Kong industry will expand with us or without us. I recommend therefore that the Radio Industry Council would do better to approach Hong Kong in a spirit of collaboration rather than resistance.

5. On the question of trade statistics I believe you will find the Census and Statistics Department in Hong Kong very willing to assist in the resolution of any dispute over figures. Here too collaboration might be more in order.

13-77

J

吮

CS FRISTON

TB 4/2

三

Room 7/350 X5242

16 April 1980

RI ISH

TRADE

COMEN

SION

23 APP

HON

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