TNAG-2978-FCO40-1470-Trade-relations-between-Hong-Kong-and-the-UK-1982 — Page 120

4. USTR HAVE USED TWO MEANS TO AVOID TRANSHIPMENT PROBLEMS. THE FIRST IS TO PRESSURE THE COUNTRY EXPORTING THE PRODUCT TOXERT GREATER CONTROL OVER ITS EXPORT LICENSES, SIMULTANEOUSLY, THE US HAS THREATENED TO EXTEND CONTROLS TO THIRD COUNTRIES RE-EXPORTING THE PRODUCTS.

5. THE SECOND METHOD IS TO PLACE A QUOTA ON EXPORTS FROM A GIVEN COUNTRY AND HAVE THE US DO THE COUNTING AND MAKING THE DETERMINATION OF WHETHER OR NOT A PRODUCT ORIGINATED IN THE COUNTRY SUBJECT TO CONTROLS, THIS IS THE CURRENT SITUATION WITH KOREA. THE US FINDS THE METHOD VERY EFFECTIVE.

6. PSE ADVANCE TO MCKINNON, OT2.

HENDERSON

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