TNAG-2978-FCO40-1470-Trade-relations-between-Hong-Kong-and-the-UK-1982 — Page 31

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Mr. Willm

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Mr AJ Macdonald IT

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Mr Muir

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Mr Nieduszynski

Mr Ayling

Mr A E Donald

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IMPORTS OF COLOUR TV FROM HONG KONG

Thank you for your minute of 11 June.

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2. What bothers me about the situation is that I do not understand what TEPL are trying to negotiate and thus precisely what it is that you are proposing to support. If the PAL patents and manufacturing agreements have lapsed in Hong Kong I cannot see how Mr Evan's has any basis for securing the agreement of the Hong Kong manufacturers to "PAL quotas" The obvious alternative interpretation to be placed on Mr Evans' actions is that he is seeking a disguised voluntary restraint arrangement to which you are proposing to give some degree of official support. This as you are aware raises important issues.

3. I can see that pursuing actions against individual UK importers might be tiresome, but could have a powerful deterrent affect since no importer is likely to relish being embroiled in legal actions. You say that TEPL claim the number of importers is not small though it appears from our limited papers that there are one or two who probably account for the greater part of the trade and who could thus be concentrated upon by TEPL.

4. I think TEPL should be strongly encouraged to pursue the legal remedies available to them and not seek to embroil HMG in what appears to me to be an attempt to bluff Hong Kong exporters into a VRA. Such an attempt is bound to be seen through.

5. The draft letter to Mr Evans appears to be inconsistent with your minute of 11 June.

6. Before further action is taken a meeting of the Departments concerned might be useful.

ley

P M S Corley

OT4

Room 302

215 5309

30 June 1982