TNAG-2978-FCO40-1470-Trade-relations-between-Hong-Kong-and-the-UK-1982 — Page 14

T Muir Esq

OT4

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British Trade Commission in Hong Kong

Mail Address GPO Box No 528 Hong Kong

Mr. Edgar (Did Mr. Dmali

Telex HX 73031 Cable Address Uktrade Hong Kong Telephone 5-230176

9th Floor Bank of America Tower 12 Harcourt Road Hong Kong

Department of Trade

1 Victoria Street

London SW1H OET

Our reference

mité & difted?

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Your reference

Miziz 12116

ECO 194/1

Date 12 July 1982

notel Ring

CSE

No

62/3/7 1602317

Тай

COLOUR TV SETS

Buy/23/2 v1/

24824/7

ree/13

14

15

Thank you for your letter of 1 July with the background to the pressure by the DOI to assist our colour TV manufacturers to obtain some kind of limit on Hong Kong exports to the UK. I think you and Dick Clift are well aware of my views which I put very forcefully to Solomon in April 1981 at the time of Mr Kenneth Baker's visit. It seemed to me that the brief provided by the Department of Industry for Mr Baker flew in the face of all the advice given by the FCO and the DOT particularly Mr Peter Blaker's letter of 10 April.

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2.

121/10 (14) 19/1

I cannot emphasise too much that the Hong Kong Government will take no steps to encourage the introduction of VRA's in relation to Hong Kong colour television sets. The arrangement will have to be on an industry to industry basis or not at all. In my minute of 17 March this year copied to you and CSE Division of the DOI I made it clear that British manufacturers had missed numerous opportunities to develop special arrangements with Hong Kong manufacturers before the expiry of the PAL licence e.g. they had wasted time badgering Hong Kong about trans-shipments and had dealt with the largely ineffectual Hong Kong Electronics Association rather than deal direct with the main manufacturers.

3.

I hope therefore that you can hold the line in accordance with your alternative draft. Any draft which implies Government backing for restrictions will add another thorn in the side of British exporters on top of the irritations caused by the MFA, the British Nationality Act and students fees.

4.

It seems to me that IT Division of the Department of Industry blow hot and cold on this subject. I do not understand the suggestion in Phipps minute of 2 June (enclosed with your letter) that no production data is available for Hong Kong. As long ago

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