207
GRS 300
CONFIDENTIAL
FM HONG KONG
TO PRIORITY FCO
TELNO 2204
CONFIDENTIAL
AMENDED DISTRIBUTION 18 OCTOBER 1985
OF 13014OZ OCTOBER 85
INFO PRIORITY HONG KONG GOVERNMENT OFFICE LONDON, PEKING.
INFO PRIORITY WASHINGTON (PLEASE PASS COPY TO PETER LO1
206
MIRT DRAFT SPEAKING NOTE ON HONG KONG'S POINTS FOR SECRETARY
OF STATE FOR TRADE IN WASHINGTON. 29 30 OCTOBER 1985
-
PRESIDENT REAGAN AND THE UNITED STATES ADMINISTRATION'S STANCE AGAINST THE PROTECTIONIST SENTIMENTS WHICH HAVE BUILT UP IN CONGRESS IN VERY MUCH APPRECIATED. SUCH STRONG LEADERSHIP IS VITAL AS THE UNITED STATES AND MANY OF HER TRADING PARTNERS ARE MAKING EFFORTS TO IMPROVE THE WORLD TRADE SYSTEM ON GOODS AND SERVICES TO FOSTER ECONOMIC GROWTH.
2. IT WILL BE IRONIC AND TOTALLY UNJUST THAT HONG KONG, ONE OF
THE FREEST TRADING PARTNERS IN THE WORLD FOR BOTH GOODS AND
SERVICES, SHOULD FACE THREATENED DAMAGE BY TWO DEVELOPMENTS IN
THE UNITED STATES.
3. THE FIRST RELATES TO THE THURMOND/JENKINS BILL. TEXTILES AND
APPAREL. WHICH COMPRISE 40 PER CENT OF HONG KONG'S TOTAL EXPORTS
TO THE UNITED STATES, HAVE BEEN SUBJECT TO VARIOUS RESTRICTIVE
BILATERAL AGREEMENTS BETWEEN THE US AND HONG KONG FOR OVER 20 YEARS.
THE PROSPECT OF AN EVEN MORE RESTRICTIVE AND UNILATERALLY IMPOSED
REGIME INVOLVING SUBSTANTIAL CUTBACKS IN TRADE IS MOST WORRYING.
THE PRESIDENT'S TOTAL OPPOSITION TO THE BILL AND HIS PROMISE TO
VETO IT IF PASSED BY THE CONGRESS IS MOST WELCOME.
4. THE SECOND RELATES TO A REVIEW WHICH MAY BE UNDER WAY IN THE
CONTEXT OF A NEW TRADE BILL UNDER CONSIDERATION IN THE SENATE,
THE EFFECT OF WHICH IS THAT HONG KONG AND SINGAPORE MAY BE EXCLUDED
FROM THE UNITED STATES GENERAL SCHEME OF PREFERENCES. IT WOULD GO
COUNTER TO EFFORTS TO ENCOURAGE DEVELOPING COUNTRIES TO OPEN THEIR
MARKETS IF THE ONLY TWO SUCH TERRITORIES WITH OPEN MARKETS WERE TO
BE SO PENALISED.
YOUDE
LIMITED
HKD
NAD
ERD
TRED
ECD(E)
ECONOMIC ADVISERS PS/MR RENTON
MR BRAITHWAITE MR MAUD
MR WILSON
COPIES TO:- MR BESTON
HKGO LONDON
CONFIDENTIAL
DTI VICTORIA ST
HHH 027/6 ннн
RECEIVED IN REGISTRY
2 1 OCT 1985
REGISTRY
DESK OFFICER
INDEX
PA
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