CONFIDENTIAL
点。
When talking about practical difficulties, Harada went over familiar ground in explaining that previous Japanese offers under the scheme had been worked out on the basis that Hong Kong would be excluded and that it would now be very difficult to go back to UNCTAD with an increase either in the Japanese exceptions list or on the list of "sensitive items for which the Japanese will operate a 50% tariff quote ceiling. But Herada quickly moved on to some of the items produced in Hong Kong which might cause the Japanese difficulty (it was not a very impressive list) and took the point about "special safeguards on certain sensitive items" These points, coupled with the attempt by larada to link the problems of China and Hong Kong, give some grounds, I think, for cautious optimism, but we must continue to press the Japanese very hard in the next few weeks. I have been unable to see rahara, the Director-General of the Economic Affairs Bureau in the Ministry of Foreign Affairs for the past week since he is completely occupied with the textile problem, but I shall talk to him at length as soon as he has a free moment.
(P. G. A. Wakefield) Counsellor
Commercial
Copies:
J.A.L. Morgan, Asq., F.E.D.,F.C.0. A.C. Buxton, dsq., UKMIS Geneva A.F. Maddocks, Esc., Hong Kong
7. Muir, Esq., OECD Paris
D. H. Hannay, Esq., UKDEL Brussels
B.. Meynell, Esq., Washington
J.. Forris, Esq., C.R.H.D.,D.O.T.I.
1.0. Laird, esq., Hong Kong Dept., F.C.O.
CONFIDENTIAL