CONFIDENTIAL
PRIORITY
CYPHER CAD A
M TOKYO 150390Z
CONFIDENTAIL
NEUTRAL
RECEIVED IN REGISTRY No.51 19 MAY 1971 NICKO
LAST
REF.
KENT
145
REF.
TO PRIORITY FCO TELNO 364 OF 15 MAY INFO PRIORITY HONG KONG
INFO WASHINGTON
OUR TELNO 265 AND HONG KONG TELNO 313: GENERALISED PREFERENCES
HONG KONG
1. MINISTER AND WAKEFIELD SAW THE DEPUTY DIRECTOR GENERAL
148
OF THE ECONOMIC AFFIRS BUREAU OF THE MINISTRY OF FOREIGN
AFFAIRS THIS AFTERNOON, THE DIRECTOR GENERAL WAS UNAVAILABLE.
MINISTER MADE THE POINTS IN OUR TELEGRAM NO 323 AND IN TELEGRAMS
UNDER REFERENCE. HE DID NOT USE THE ARGUMENT ABOUT THE INFLUENCE
OF JAPANESE DECISIONS ON THE US SINCE THE DESIRE TO EXCLUDE
HONG KONG PRODUCTS FROM BENEFIT UNDER THE US SCHEME IS ONE
OF THE MAIN ARGUMENTS OF THE MINISTRY OF TRADE AND INDUSTRY
AND JAPANESE INDUSTRY AGAINST THE INCLUSION OF HONG KONG.
OHTAKA, WHO WAS PRESENT DID MOST OF THE TALKING AND CONFIRMED
A CONTINUING LACK OF AGREEMENT BETWEEN THE MINISTRIES, BOTH AS
REGARDS THE INCLUSION OF HONG KONG IN PRINCIPLE AND THE POSSIBLE
LIST OF PRODUCTS FOR EXCLUSION. HE SAID THAT THE PRIME MINISTER
AND THE MINISTER FOR FOREIGN AFFAIRS WERE SYMPATHETIC BUT THAT
MITI HAD STILL NOT ACCEPTED HONG KONG INCLUSION. THE MINISTRY OF
FINANCE WOULD ACCEPT A CONCENSUS DECISION. MITIS RESITANCE WAS
PARTLY DUE TO THE EMBARRASSMENT OF THE CHANGE OF MIND ON HONG
KONGS EXCLUSION FROM THE SCHEME, JAPANESE INDUSTRY HAD BEEN TOLD
OF HONG KONGS EXCLSUION LAST YEAR; THE MINISTRY OF FOREIGN AFFAIRS
HAD HAD TO ACCEPT THIS AT THE TIME IN ORDER TO ACHIEVE A BETTER
GENERAL OFFER FOR UNCTAD. AFTER THE PRIME MINISTERS MEETING
/WITH
PA 1945.
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