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HION

To:-

In Confidence

Type 1 +

From

Telephone No. & Ext.

Department

HONG KONG AND THE JAPANESE GENERALISED PREFERENCE SCHEME

You will remember that during our most useful meet-

ing in New York last October, I stressed the importance

we attach to the inclusion of Hong Kong in the Japanese

scheme of generalised preferences. I was very pleased

therefore, when I saw your statement in the Diet on 23

March recognising Hong Kong's suitability as a benefi-

ciary.

!

I understand, however, that the list of "sensitive"

Hong Kong exports. now under consideration in Tokyo,

giving rise to difficulties. I am sure that such prob-

is

lems need not prevent a meaningful offer to Hong Kong,

and I very much hope that you will find it possible to

include Hong Kong and the other British dependent ter-

ritories from the outset in your preference scheme, as

have the EEC.

I know that the Hong Kong Government stand ready to send officials to Tokyo to discuss any outstanding prob-

lems. I believe that such discussions might lead to a

rapid resolution of the difficulties, and I suggest that

they should, if possible, take place before the end of

this month. In this way, Sir Alec Douglas Home and Mr

Aichi can have before them the necessary details, should

there remain any points still to be cleared up, when they

meet in London next month.

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