IDIATE

CYPHER CAT A

FH TOKYO 280240Z

CONFIDENTIAL

RECUVED IN

REGISTRY No.51

-4 JUN 1971

CONFIDENTIAL [NEUTRAL NKK 6||

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TO IMMEDIATE FCO TELNO 412 OF 28 MAY INFO HONG KONG AND WASHINGTON.

YOUR TEL NO 296: GENERAL I SED PREFERENCES AND HONG KONG.

1. THE PRIME MINISTER'S MESSAGE WAS HANDED OVER TO MR SATO'S

OFFICE YESTERDAY AND COPIES GIVEN TO THE MINISTRY OF FOREIGN

AFFAIRS.

2. TODAY'S PRESS REPORTS A STATEMENT YESTERDAY BY MIYAZAWA,

MINISTER, INTERNATIONAL TRADE AND INDUSTRY, TO MR ANTHONY,

AUSTRALIAN DEPUTY PRIME MINISTER, WHO IS ON A VISIT HERE, THAT

MITI WISHES TO START THE PREFERENTIAL TARIFF SCHEME ON 1 AUGUST,

BUT THE SCHEME WOULD NOT BE EXTENDED TO DEPENDENT TERRITORIES

SUCH AS HONG KONG, PAPUA AND NEW GUINEA BEFORE APRIL NEXT YEAR.

3. WAKEFIELD SAW HIRAHARA THIS MORNING, WHO CONFIRMED MIYAZAWA'S

STATEMENT. HE SAID THE EXCEPTIONS LIST WAS DIFFICULT AND THE TEXTILE

INDUSTRY WERE AT THE MOMENT IN NO MOOD TO GIVE FAVOURS. HE HINTED

THAT THE EXCEPTIONS LIST MIGHT BE SHORTER, GIVEN DELAY.

WAKEFIELD REFERRED TO MR HEATH'S LETTER AND SAID POSTPONEMENT

WOULD BE MOST DISAPPOINTING TO HONG KONG. IF THERE WERE NO

ANNOUNCEMENT OF A DEFINITE DATE FOR THE INCLUSION OF HONG KONG,

THIS WOULD BE A GRAVE SHOCK, PARTICULARLY AFTER THE ENCOURAGING

STATEMENTS WHICH HAVE BEEN MADE BY MR SATO AND OTHERS.

HIRAHARA SIAD THAT THE MY FA UND RSTOOD THIS: THE DIRECTORS-

GENERAL OF THE MINISTRIES CONCERNED WERE MEETING AT ELEVEN THIS

MORNING TO REACH A DECISION ON THE ISSUE. IT WAS, OF COURSE, NOT

KNOWN YET WHAT ACTION THE PRIME MINISTER WOULD TAKE.

FCO PASS ROUTINE TO HONG KONG AND WASHINGTON.

PILCHER.

REPEATED AS REQUESTED]

INTERNATIONAL TRADE DISTRIBUTION

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CONFIDENTIAL

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