IA
CONFIDENTIAL
FM HONG KONG
TO IMMEDIATE FCO
TELNO 2197
OF 261055Z AUGUST 92
CONFIDENTIAL
TOP COPY Q DIST?
110
155417
MDHIAN 6697
PERSONAL FOR COX, HKD FROM PS/GH.
MY 2ND IPT: VISIT BY MR GOODLAD: BRIEFING
SECTION 301 MARKET ACCESS NEGOTIATIONS
HKD 026/13
W
17/8
1. SECTION 301 INVESTIGATIONS INTO CHINA'S MARKET ACCESS BARRIERS WERE INITIATED BY THE US TRADE REPRESENTATIVE (USTR) ON 10 OCTOBER 1991.
2. FOLLOWING THE FIFTH INCONCLUSIVE ROUND OF BILATERAL CONSULTATIONS HELD IN BEIJING ON 19-21 AUGUST 1992, THE US HAVE PUBLISHED A PRELIMINARY LIST OF POSSIBLE TARIFF INCREASES ON CHINESE EXPORTS TOTALLING USD3.9 BILLION. THE US ADMINISTRATION HAS INVITED PUBLIC COMMENTS ON THE LIST. HONG KONG GOVERNMENT IS ANALYSING THE LIST AND WILL SUBMIT COMMENTS. TRADE AND INDUSTRY ASSOCIATIONS IN HONG KONG HAVE ALSO BEEN ENCOURAGED TO SUBMIT COMMENTS.
3. UNDER SECTION 301 OF THE US TRADE ACT 1974, THE USTR MUST DETERMINE WHETHER TO TAKE RETALIATORY ACTION AGAINST CHINA BY 10 OCTOBER 1992. IF THEY DECIDE TO DO SO, A FINAL LIST, LIKELY TO BE SIGNIFICANTLY SHORTER THAN THE PRESENT LIST (PERHAPS HALF THE SIZE) WILL BE PUBLISHED. TARIFFS ON ITEMS LISTED WILL BE UP TO 100 PERCENT. THE LIST IS LIKELY TO BE IMPLEMENTED 30 DAYS THEREAFTER I.E. 10 NOVEMBER, ALTHOUGH THIS MAY BE EXTENDED BY 180 DAYS. THE US HAVE SAID THAT THEY WOULD NOT NEGOTIATE WITH CHINA AFTER 10 OCTOBER.
4. WE ARE TAKING THE FOLLOWING LINE:
A. THE PRELIMINARY TARGET LIST HAS BEEN RELEASED BY THE US PRIMARILY FOR PUBLIC COMMENT. THE US DO NOT HAVE TO DECIDE WHETHER TO INCREASE TARIFFS ON CHINESE PRODUCTS UNTIL THE STATUTORY DEADLINE OF 10 OCTOBER 1992.
B. THE HONG KONG GOVERNMENT IS ANALYSING THE LIST AND WILL SUBMIT
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