Hong Kong (a PAL-standard country) is likely to become an increasingly important manufacturer of colour TVs and a quota of 50,000 sets was consequently offered by TEPL to the Crown Colony's manufacturers for CTV exports to the UK during 1982. (Actual exports of CTVs to the UK from Hong Kong amounted to 20,000 sets in 1981). However the Hong Kong manufacturers are threatening to disregard this proposed quota and Mr Evans has appealed for our help, suggesting that he be provided with a letter indicating that HMG supports the quota. He believes that if he were able to quote from such a letter to the Hong Kong manufacturers they would come into line. He is particularly concerned at the demands of Cony, the largest producer there, that its quota should be more than doubled to 50,000 units, because of the"domino effect" this might trigger.
We very much hope it will be possible to benefit for a few more years from the protection that the PAL patents provide, particularly against unrestrained imports of colour TVs from non-PAL countries such as Taiwan and S Korea. It is thus important that the PAL edifice should not be undermined and that we do what we can to shore it up until the UK consumer electronics industry can take full advantage of the new products expected to come forward in the mid 80s. Accordingly I wish to send Mr Evans a suitable letter, a draft of which is attached. (We shall of course clear the letter with Ministers here.)
I hope that you can see no difficulty about this.
A copy of this letter goes to Peter Corley in Department of Trade.
You since
A) Marimald
A J MACDONALD
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