W(B)L 51-7406

NOTHING TO BE WRITTEN IN THIS MARGIN

RESTRICTED

the principal need is for a favourable

decision by the EEC.

However, this

decision must represent the EEC's taking

up a sufficiently large proportion of

Hong Kong exports to warrant the USA

following suit.

Whatever partial de al

is suggested to the EEC should also be

applicable to the USA.

(c) Japan. The most negative reactions

to our representations have come from

Japan, which takes only 3.4% of

Hong Kong's exports (0.5% of total

Japanese imports) and in 1969, enjoyed

a trade surplus with the colony of

US.8546 million.

Japanese excuses

have varied widely, and hardly bother

to conceal the basic fact that

(i) Japanese textile firms would not

tolerate any concession to

Hong Kong exports.

(ii) Japan would feel obliged to

increase her list of sensitive

items were Hong Kong included as

beneficiary.

RESTRICTED

/It is

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