TNAG-1056-FCO40-1306-Trade-relations-between-Hong-Kong-and-the-EEC-1981 — Page 41

Inward Investment

Senator Brock noted that some United States companies, and specifically Enserch, were concerned that United States owned companies in the United Kingdom might not be treated on a par with United Kingdom ones. The Secretary of State categorically denied that this might be the

It was true that multinationals were subject to public suspicion, but there was no question of Government discrimination. He would welcome any suggestions from the United States Embassy as

It was also noted that the to how best to dismiss such suspicions. United States Government might be open to criticism about its definition and treatment of United States companies.

case.

Kraft paper

This

Senator Brock expressed concern that the EC, by changing tariff definitions, would raise tariffs against soft Kraft paper.

Round intention to reduce would run entirely counter to the Tokyo such tariffs, and cause real political problems with his domestic industry which had hiterto been strongly resistent to protectionist CTION pressures. The Secretary of State agreed that we should clarify

the position.

Conclusion

Senator Brock had a clear appreciation of the trade policy and domestic political issues of his new job. He is clearly concerned to carve out

his ambitions on the a real role for the STR, and will be centring GATT. He noted that there was a split within the Administration between those who were 100% free traders, and those who were not. There were real protectionist pressures at present, and it was important that they be resisted. In this respect he appreciated the fact that we had not extended restraints on United States textiles. He fully expected economic recovery - in 1982 - to relieve such pressures, and hoped that this same experience and attitude would be reflected by its trading partners.

The meeting which began at 9.30 am concluded at 11.30 am.

JOHN RHODES PS/SOS (T)

Room 803 VS

Extn 5422

June 1981

CONFIDENTIAL

5

cc Department of Trade:

Those present

Mr Caines

Mr Gregson

Miss Lackey, WEG Mr Abramson, CRE 1 Mr Lane, SP

Mr Dunning, CRE 2 Mr Johnson, CRE 2 Mr Meadway, CRE 1 Mr Neal, CRE 1 Cabinet Office:

Mr Franklin

ECGD: (for Item 4)

Secretary

Department of Industry:

Mr Bryant, CT (Item 3) Mr Jardine RSI (Item Mr Wright. 'PTM (Item 81

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