TNAG-1372-FCO40-1818-Ministerial-visits-from-the-UK-to-Hong-Kong-1985 — Page 128

GRS 600

S. CONFIDENTIAL

CONFIDENTIAL

FM HONG KONG

TO IMMEDIATE FCO

TELNO 2224

OF 180945Z OCTOBER 85

INFO IMMEDIATE PEKING

VISIT OF MR. RENTON.

BRIEFING TELEGRAM : PROTECTIONISM.

нни очи

RECEIVED IN REĜISTRY

2 1 OCT 1935

INURY

PA

MUISTE Y Action Taken

219

LINE TO TAKE.

1. GENERALLY, TO INDICATE HMG'S SUPPORT FOR HONG KONG IN ITS FIGHT

AGAINST PROTECTIONISM. IN PARTICULAR :

(A) THURMOND/JENKINS BILL: POINT OUT THAT HMA WASHINGTON IS HELPING WITH INTENSIVE LOBBYING IN SUPPORT OF HONG KONG'S CASE. (SECRETARY OF STATE FOR TRADE AND INDUSTRY, MR. BRITTAN, HAS ALSO AGREED

TO MAKE HONG KONG POINTS DURING HIS VISIT TO WASHINGTON ON 29 AND

30 OCTOBER. DEPENDING ON THE OUTCOME, REFERENCE COULD BE MADE TO

THIS AT MR. RENTON'S PRESS CONFERENCE ON 31 OCTOBER.)

(B) MFA : TO MAKE THE GENERAL POINT THAT HMG WILL HAVE DUE REGARD TO

HONG KONG'S INTERESTS IN NEGOTIATIONS ON THE FUTURE OF THE MFA.

THE UK MINISTER OF STATE FOR TRADE, IN A STATEMENT IN THE HOUSE OF

COMMONS ON 9 MAY, MADE THE FOLLOWING POINTS SETTING OUT HMG'S

POLICY ON THE FUTURE OF THE MFA :

(1) HMG IS COMMITTED TO FREE TRADE IN GENERAL.

(11) ANY RENEWED MFA SHOULD BE TRANSITIONAL AND MORE LIBERAL THAN

THE PRESENT ONE.

(111) THE POOREST LDCS AND EXPORTING COUNTRIES WITH OPEN MARKETS

SHOULD RECEIVE MORE FAVOURABLE TREATMENT.

BACKGROUND.

ON

2. HONG KONG'S ECONOMY IS HEAVILY DEPENDENT ON EXTERNAL TRADE. IN

1984, THE TOTAL VALUE OF HONG KONG'S EXTERNAL TRADE WAS 179 PER CENT

OF ITS GROSS DOMESTIC PRODUCT. OVER 30 PER CENT OF HONG KONG'S

MANUFACTURING PRODUCTS ARE EXPORTED AND THE MANUFACTURING SECTOR

DIRECTLY EMPLOYS 34 PER CENT OF HONG KONG'S LAPOUR FORCE. THE LIVELIHOOD OF MOST PEOPLE DEPENDS, EITHER DIRECTLY OR INDIRECTLY,

HONG KONG HAVING REASONABLE ACCESS TO ITS MARKETS AND NOT BEING

DISCRIMINATED AGAINST VIS-A VIS ITS COMPETITORS. AS HONG KONG

ITSELF MAINTAINS A FREE MARKET IN BOTH GOODS AND SERVICES,

PROTECTIONIST PROPOSALS AGAINST HONG KONG ARE STRONGLY FELT TO BE

UNJUST AND UNJUSTIFIED.

KEY ISSUES.

CONFIDENTIAL

ANY

13.