Telegram from Acting Secretary of State James Webb to American Consul, Hong Kong

OUTGOING TELEGRAM Department of State 4327 INDICATE: COLLECT CHARGE TO SECRITE DECLASSIFIED E.O. 12065, Sec. 3-402 State Dept. Guidelines, March 6, 1982 RECEIVED DC/T SENT TO: Amconsul, HONG KONG 1960 DEB NLT, Date 4-5-85 ACCEPTANCE UNIT 18 Nov 13 1208PM Origin FROM: State-Commerce COMM REDEPTELS 949 AUG 31 and 1300 SEPT 24 and CONGENTEES 1265 OCT 1 and 1358 OCT 9. Info: EUR Currently applicable licensing policy adopted 11 Jan 1951 governing FE UNA shipments of both Positive List and non-Positive List items including raw cotton, E DCL to Hong Kong and Macao reported DEPCIR A-393, Jan 17. OIT may approve licenses REP Sov, Hoz contries OLI thereunder for industrial raw materials where no transshipment to Sub-Group A CI A AMM destinations indicated; where reasonable indication, such as requirements data ICR and/or other official evidence that shipment does not involve excessive quantities, stockpiling, industrial expansion, or other questionable security risk in and where required for use in processing in Hong Kong or Macao of goods for consumption in Hong Kong and Macao or for export to approved destinations. Thus CLD license raw cotton to Hong Kong only if all yern, cloth, clothing etc. made therefrom is consumed in Hong Kong or Macao or reexported to non-SOV BLOC Dist. Lesired destinations. Although DEPTEL 949 had suggested stricter criterion which WED Offices Orly) bar licensing to Hong Kong even where cotton of non-US origin was utilized in any manufacture in Hong Kong which was being exported to SOV BLOC, such DC/L represented maximum aim rather than minimum acceptable basis. While revision this policy under consideration for several months and document along lines previously communicated to you now under discussion at working level NATL Security Council, still uncertain whether or when such revisions will be approved. Export Drafted by Commerce Dept. :OIT :MABerger Telegraphic transmission and GSalleeg E.P.Walinsky classification approved by: R. W Barnett Clearancest Cleared in substance by: FE @ Mr. Allison CA D R.W.Barnett EDS - R. B. Wright REGREST REPRODUCTION FROM THIS -74 COPY, IF CLASSIFIED, IS PROHIBITED.