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C. & 1. 371
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30x100-4/63-D64525
From: Counsellor for Hong Kong Commercial Affairs, Washington
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: Director of Commerce and Industry
BRITISH EMBASSY, WASHINGTON, D.C.
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Memorandum No. 184 (Continued)
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to some prosperous countries than to many needy ones. If the Administration do put a bill to Congress, I would expect the Congress to rewrite it (they have shown their willingness to do this over the Trade Bill, to mention only one) in a much more limited form. But I think it more likely that, after taking soundings among such key figures as Chairmen Mills and Long, the Administration will delay putting in a bill until conditions become more favourable, if they ever do. Indeed, I have a strong suspicion that they have already taken soundings, with negative results, and that Ed Cronk and his friends are dutifully making plans for something which they themselves do not believe will really happen.
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By the way, this is for the moment my personal opinion only; we have not gone so far as to formulate an Embassy view or prediction.
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Anyway, we must obviously keep on trying to get Hong Kong included in the U.S. scheme on the best terms possible in
case I am wrong and Congress welcomes the scheme. Once Mr. Heath has said his piece to Mr. Nixon there is nothing new we can do directly vis-à-vis the Americans, and assuming the E.E.C, are now certain to come up with something, the most important step remaining is to persuade the Japanese to accept Hong Kong in their scheme. Here I should like to make, a suggestion which is perhaps both silly and ill-informed, but still perhaps worth trying in the last resort. Namely that you should try appealing to the Japanese sense of honour, or "face", or both, on the following lines:
(i) Japan caused enormous economic damage to Hong Kong between 1941 and 45,
(ii) Almost alone among Far Eastern territories occupied by Japan (I am not sure of the facts here) Hong Kong made no claim for reparations,
(iii) At a time when Japan's economy was down and out, Hong Kong contributed to its recovery by almost uniquely allowing unrestricted entry to Japanese products.
(iv) Ever since then, Hong Kong has contributed to the Japanese economy by running a heavy trade deficit with Japan, etc.,
(v) So is it honourable for Japan to snatch at the first chance of damaging Hong Kong's economy by denying Hong Kong preferential status, when this would cost Japan very little but when exclusion by kkxxx Japan will result in Hong Kong's exclusion by the U.S.? Is there no limit to self-interest and so on.
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