10:
Mr Melville OT4/3a
From:
MF Payne ITP3b
Room 231 ASH
215 6479
23 March 1992
Copies:
Mr Berg OT4/3
Mr Cheesman ITP3b
Mr Crowhurst ITP3C (with papers) Mr Thomas OT4/3a
Miss Gray OT2/2d /
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DELTA CROMPTON CABLES: SOUTH AFRICAN COMPETITION IN HONG KONG Thank you for your minute of 19 March.
2 There are normally two possible routes for dealing with complaints by UK companies about prohibited government subsidies: the EC's anti-subsidy legislation or the Gatt Subsidies Code. The former would, however, not be relevant in this case because the South African exports concerned are to Hong Kong, not to the Community. Perhaps Miss Gray could comment on whether Delta have any locus standi to make an anti-subsidy complaint to the Hong Kong authorities under any relevant Hong Kong legislation? any event, it is difficult to see how the normal measures for dealing with subsidies, ie countervailing duties on imported goods, could be applied in the context of a one-off tendering situation.
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3 As far as the GATT Subsidies Code is concerned, it would be for the Commission (which represents the Community in GATT) to raise this matter in the Subsidies and Countervailing Measures Committee, with a view to South Africa withdrawing any subsidies which are prohibited under the Code. I am copying the papers to Mr Crowhurst in view of his responsibilty for this Committee so that he can comment more fully on this possibility.
James Smith - Laittan
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24/3/92
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