TNAG-2979-FCO40-1471-Trade-relations-between-Hong-Kong-and-China-1982 — Page 3

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FM HONG KONG 090703Z JUN 82

TO PRIORITY F C O

TELEGRAM NUMBER 605 OF 9 JUNE

INFO PRIORITY HONG KONG GOVERNMENT OFFICE LONDON, PEKING.

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MY TEL NO 597 CHINESE EXPORT DUTIES

C4E

10/6.

FURTHER INFORMATION NOW RECEIVED FROM THE HONG KONG RICE TRADE CONFIRMS THE NATURE AND PURPOSE OF THE NEW DUTIES AS SUGGESTED IN PARA 3 OF MY TUR. LOCAL RICE IMPORTERS SAY THAT, AS A RESULT OF THE TRANSFER OF RESPONSIBILITIES FOR RICE AND OTHER FOOD EXPORTS FROM PEKING TO THE PROVINCIAL AUTHORITIES, A LARGE AMOUNT OF REVENUE HAS BEEN DIVERTED TO THE LATTER AND THE PURPOSE OF THE EXPORT DUTIES IS TO TRANSFER SOME OF IT BACK. THE LOCAL PRC COMPANY WHICH HANDLES FOODSTUFF IMPORTS, NG FUNG HONG, IS REPORTED

AS SAYING THAT THIS IS ESSENTIALLY AN INTERNAL ACCOUNTING EXERCISE AND SHOULD NOT AFFECT EXPORT PRICES.

2. THE FACT THAT RICE PRICES, AT LEAST, WILL CONTINUE TO REFLECT INTERNATIONAL TRENDS IS UNDERLINED BY A REDUCTION OF BETWEEN HONG KONG DOLLARS 4 - 12 A PICUL WHICH WAS MADE, COINCIDENTALLY NO

DOUBT, ON THE VERY DAY THE 20% EXPORT DUTY ANNOUNCED.

YOUDE

MINIMAL HK&GD

FED

COPIES TO:-

HONG KONG GOVT. OFFICE

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fine 1016

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