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from her obligation to maintain the existing export
restraint and to replace the safeguard protocol by a
simple consultation provision so that by 1973 she would
have achieved her aim of removal of the restrictions on
Anglo-Japanese trade which she regards as discriminatory.
Our offer is conditional on the Japanese liberalising the
items of interest to us and reducing their onerous tariffs
on imports of whisky and of wool cloth. The President of
the Board of Trade confirmed to the Japanese Ambassador on
18 September that the Conservative Government endorsed their
predecessors' proposals. The Prime Minister raised the
mattor in general torus with former frizo Minister Kishi
on 22 September. The Japanese restonsa is still awaited.
3.E.C. Aspects
4.
If our negotiations for entry into the E.E.C. are
successful we shall no doubt be expected to dopt the
Community's Common Commercial Policy including any policy
that may be agreed towards Japan. The Japanese are well
aware of this. At present the Six have not worked out their
policy but the indications are that they are nervous about
the effect of Japanese imports if liberal policies prevail.
While therefore they would prefer us to retain the safeguard
in its present form we think that our interests would be
better served by continuing to work for a settlement on the
basis indicated. If Japan were ready to accept our terms
(and it seems in her interests to do so) we see no reason
why a settlement should prejudice cur negotiations for entry.
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