188
her Lambert.
DEPARTMENT OF TRADE AND INDUSTRY
1 VICTORIA STREET
LONDON S.W.1
01 222 7877
пу
FMPB. This is by now academic wince on onto wre'd (8/6) the brief has
Jewley Esq
Hong Kong Department
buen jangknaid.
Foreign and Commonwealth Office RECOVED IN
King Charles Street
LONDON SW1
REGISTRY No. 51
4 June 1971
16 JUN 1971
Dear Clinky,
ANGLO-JAPANESE TALKS
-
HICKS
GENERALISED PREFERENCES
Thank you for copying to me your minute of 2 June to Mr Perceval. Since the argument referred to in your paragraph 2 originated from me I should perhaps explain what I have in mind. I appreciate your view and that of the post in Tokyo that the argument is weak but, if spelt out rather more fully I think it may have some effect with the Japanese.
2 As you say industry in Japan would prefer to exclude Hong Kong. It is equally true that most industry in the UK would like to see Hong Kong excluded from Commonwealth preference (as she will be following enlargement). I do not see that we lose anything by urging the Japanese Government not to fall in with the view of their industry.
3 The point is that the Japanese scheme already compares badly with the others in terms of burden sharing. The Americans intend to pillory the Japanese for having safeguarded their industries to a greater extent than any other donor. If Japan excludes Hong Kong we shall pillory them likewise for failing to match the burden assumed by us and by the EEC. If we also point out that the Japanese move has been motivated by a desire to protect Ik their US market against Japan we can expect support from the
Americans in criticising the Japanese for flouting principles agreed upon in OECD in 1967. The Japanese are increasingly sensitive to criticism from the Americans for their protectionism and aggressive exporting and it is this fear that I suggest we should exploit.
sexy eve,
CoKemmis
OH KEMMIS
cc Mr Perceval FCO
Mr McCarthy FED
Mr Laird
Hong Kong Department