TNAG-2978-FCO40-1470-Trade-relations-between-Hong-Kong-and-the-UK-1982 — Page 113

if

GPS 210

UNCLASSIFIED

COMMERCIAL IN CONFIDENCE

FM B T C HONG KONG 140855Z JUN 82

TO PRIORITY

PEKING

TELEGRAM NUMBER BTC 62 OF 14 JUNE

INFO DOT

FOR CLARK FROM SEATON.

MYTELNO CREDA 150: DUNLOP

TOU

1. ON 11 JUNE I SPOKE TO FRANK USHER OF THE DUNLOP TEAM CURRENTLY

IN CANTON NEGOTIATING THE TYRE FACTORY MODERNISATION PROJECT. 2. HE SAID THAT THE TWO SIDES WERE WORKING THROUGH THE SCHEDULES

ATTACHED TO THE TECHNICAL AID AGREEMENT, THE ONLY AGREEMENT WHICH

REMAINED TO BE FINALISED. HE DESCRIBED THIS AS SLOW PAINSTAKING

WORK BUT HOPED THAT THIS WOULD BE COMPLETED BY WEDNESDAY 16 JUNE. 3. REFERRING TO THE TAX PROBLEM HE SAID THAT FOR THE MOMENT THIS

WAS TO BE TREATED AS A PROBLEM FOR THE CHINESE SIDE, WITH THE AGREEMENT PROCEEDING ON A NO-TAX BASIS (IE ON THE ASUMPTION THAT

THE CUSTOMER WILL MEET THE TAX BILL). DUNLOPS HAD YET HAD NO

REACTION ON THE PRICE INCREASE RESULTING FROM THE ECGD INTEREST RATE

CHANGE.

4. IT APPEARS THAT THERE IS NO LIKELIHOOD OF A SIGNING CEREMONY

BEFORE THE END OF THE MONTH. USHER NOTED THAT YOU WOULD BE IN CANTON

AT THAT TIME. MACDONALD (DUNLOP HONG KONG) THINKS THAT, ASSUMING THAT FINAL AGREEMENT IS REACHED, A CEREMONY TO COINCIDE WITH THE FIRST DOWN-PAYMENT BY THE CHINESE, ON AUGUST 15, MIGHT BE AN

APPROPRIATE ALTERNATIVE.

5. USHER IS TRAVELLING TO PEKING ON 16/17 JUNE (TO DISCUSS THE CHOU YANG PROJECT WITH CNCCC) AND WILL CONTACT YOU.

MARCH

MINIMAL

HKJGD

FED PUSD

TRED

COPIES

то

CRE DOT