CYPHER/CAT A
IMMEDIATE TOKYO
TELEGRAM NO. 768
CONFIDENTIAL
267
TO FOREIGN AND COMMONWEALTH OFFICE
16 OCTOBER 1970
(266)
269
270
CONFIDENTIAL 1688332 [NEUTRAL]"
ADDRESSED TO F C O TELNO 768 OF 16 OCTOBER RFI TO HONG KONG ·
WASHINGTON UKDEL BRUSSELS UKMIS GENEVA.
OUR TELNO 765 #HONG KONG AND UNCTAD GENERALISED PREFERENCES.
THE MINISTER OF INTERNATIONAL TRADE AND INDUSTRY RAISED THE ISSUE OF PREFERENCES DURING MR KANS CALL THIS AFTERNOON. MR KAN DEPLOYED THE COMMERCIAL ARGUMENTS FOR INCLUDING HONG KONG. AFTER MAKING SOME PLAY WITH THE JURIDICIAL OBJECTIONS OVER HONG KONGS COLONIAL STATUS, MR MIYAZAWA SAID THAT OFFICIALS IN HIS MINISTRY WERE AGAINST GIVING PREFERENCES TO HONG KONG
BECAUSE OF THE POSSIBLE DAMAGE TO JAPANESE INDUSTRIES.
HE SAID, HOWEVER, THAT HE HAD NOT SO FAR BEEN ABLE TO ELICIT FROM HIS OFFICIALS WHICH INDUSTRIES WERE THREATENED BY HONG KONG IMPORTS, AND ASKED WHICH WERE THE PRINCIPAL EXPORTS FROM HONG KONG WHICH MIGHT BE INCLUDED UNDER THE SCHEME. HE WAS TOLD
THEY WERE MAINLY MADE UP GARMENTS.
2. WAKEFIELD SUGGESTED THAT A THREAT TO A DOMESTIC INDUSTRY COULD BE DEALT WITH UNDER THE UNCTAD SCHEME, THE MINISTER
ASKED WHETHER THIS MIGHT BE DONE BY A BILATERAL AGREEMENT
WITH HONG KONG SINCE THE JAPANESE LIST OF GOODS TO BE INCLUDED
IN THE SCHEME WAS ALREADY FIXED AND THEY DID NOT WITH TO REDUCE
ITSSCOPE. WAKEFIELD SAID THAT THESE WERE TECHNICAL QUESTIONS WHICH,
IN VIEW OF THE SHORTNESS OF TIME, IT MIGHT BE ADVANTAGEOUS FOR
OFFICIALS TO DISCUSS. IT WAS THEREFORE AGREED THAT WE SHOULD CONTACT
MITI OFFICIALS NEXT WEEK AND TALK OVER THE PROBLEM OF WHICH HONG KONG EXPORTS, IF ANY, CONSTITUTED A THREAT TO JAPANESE INDUSTRY AND WHAT REMEDY THERE MIGHT BE.
HICK6/12
13.
CONFIDENTIAL