Hrer 12116.
CONFIDENTIAL
Mr Donald
[Donald
No
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Ad
PROPOSED PAL QUOTAS ON EXPORTS OF COLOUR TV SETS FROM HONG KONG 77
TO THE UK DURING 1982
A
1.
•
B
I attach a draft reply to a letter of 24 June from Mr Macdonald of the DOI's Information Technology Division.
2.
As the draft letter explains, the Hong Kong Government are strongly opposed to any kind of Voluntary Restraint Agreement on televisions or in any other field. Before Mr Baker's visit to Hong Kong in 1981, there had been plans to raise this topic with the Hong Kong Government. However, we and the DOT persuaded the DOI that this would not merely be of no advantage to us, as the Hong Kong Government would have been certain to refuse, but would probably be positively damaging to our relations with Hong Kong. The topic was, therefore, not raised on that occasion.
3.
The kind of letter which Mr Macdonald is considering would be tantamount to an expression of support by HMG for the concept of voluntary restraint. (See Mr Corley's minute of 30 June to Mr Macdonald). Now, especially when there is a widespread feeling in Hong Kong that protectionist pressures from the developed countries are increasing, it would be most unwise for HMG to give the impression that we support further restrictions on Hong Kong exports.
4.
ECD(E) have seen these papers. They suspect that the action Mr Macdonald proposes may be contrary to EC law on trade restrictions. They are consulting their legal advisers on this.
5.
It is thus right to send a pretty firm reply to Mr Macdonald. At the same time we should be under no illusions about the pressure which the DOI will assert on this question. There is likely to be a good deal of ministerial steam behind it.
7 July 1982
cc:
ECD(E)
Blip
R D Clift
Hong Kong and General Department
CONFIDENTIAL
SECRET
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