TNAG-1155-FCO40-1435-Visits-by-Members-of-Parliament-(MPs)-to-Hong-Kong-1982 — Page 103

HKGD

From The Minister of State

Hick 026/2

Foreign and Commonwealth Office

London SW1A 2AH

3 December 1982

160

r

по

28.4/10 AFA /12

coped

दिली

A FCC U

Ram 13/12

Iber on Somal

jean

154

INDUSTRY AND TRADE COMMITTEE VISIT TO HONG KONG

see (161)

I am sorry to learn of the incident detailed in your letter of 30 November, and fully appreciate the Committee's concern.

When I offered to give the members a personal briefing on the political background to the visit I understood that it was agreed that the session was to be informal, if private, and not therefore covered by the usual rules of Select Committee procedure. I think you will agree that, in those circumstances, it was perfectly proper for us then to brief confidentially those concerned with your visit about those aspects which seemed to be of particular concern to the Committee. I do assure you that no discourtesy was intended to the Committee.

I ought perhaps to say something too about the substance of this matter. The British Government has consistently urged Hong Kong's case as a territory free of tariffs on the rest of the EC. We achieved some limited success in softening the position for the opening rounds of negotiations and were also instrumental in November in ensuring that the Commission were given the flexibility they sought in order to conclude negotiations.

As for the low-cost supplier agreement, Hong Kong frequently claims that it is the US, not themselves, who are the real 'low-cost suppliers'. It is true that US imports to UK were for a time cheaper, but the recent strength of the US dollar has again reversed this. Moreover, UK imports from the US have declined since 1980.

I am told that in other respects your visit seems to have gone well: I hope so. Thank you again for telling me of the Committee's concern before my own visit to Hong Kong next week.

Yours sincerely;

Sir Donald Kaberry Bt TD DL MP Chairman, Select Committee on

Industry and Trade

House of Commons

London SW1A OAA

(BELSTEAD)