PRIORITY
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CONFIDENTIAL
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CYPHER CAT/A
FM HONG KONG 12 0328Z
CONFIDENTIAL
./NEUTRAL/
TO PRIORITY F.C.O. TELEGRAM NO. 313 OF 12TH MAY 1971 INFO
PRIORITY TOKYO AND WASHINGTON.
TOKYO TELEGRAM NO. 323 TO YOU AND YOUR TELEGRAM NO. 256 TO
TOKYO.
GENERALISED PREFERENCES.
I AGREE THAT A SUITABLY HIGH LEVEL APPROACH SHOULD BE MADE AS PROPOSED BY TOKYO. I CONFIRM (PARAGRAPH 4 OF WHITEHEAD'S LETTER OF 23RD APRIL TO BURNS) THAT HONG KONG OFFICIALS COULD VISIT TOKYO FOR CONSULTATIONS AT ANY TIME. EVEN IF THE JAPANESE PROVE TO BE UNRECEPTIVE TO THIS IDEA, THE EMBASSY MIGHT CONSIDER IT WORTHWHILE TO HAVE THE OPPORTUNITY OF DISCUSSIONS AND I WOULD BE HAPPY TO SEND ONE OR TWO OFFICIALS
FOR THIS PURPOSE.
2. I HAVE TWO COMMENTS TO MAKE ON PARAGRAPH 6 OF TOKYO
TELEGRAM NO. 323, VIZ:
(A) AS REGARDS THE E.E.C. SCHEME: THE PRESENT PROPOSAL IS TO EXCLUDE FROM PREFERENCES ON COTTON AND COTTON TYPE TEXTILES NOT ONLY HONG KONG, BUT ALSO OTHER NON-MEMBERS OF THE GROUP OF 77 (INCLUDING TAIWAN) AND NON-SIGNATORIES
MA 2
OF THE COTTON TEXTILES ARRANGEMENT SEMICOLON THIS MEANS IN FACT THAT ONLY COLOMBØ, INDIA, JAMAICA, MEXICO, PAKISTAN, U.A.R. AND THE REPUBLIC OF KOREA WILL BENEFIT. FURTHER, WITH THE EXCEPTION OF FOOTWEAR, FOR ALL THE OTHER ITEMS WHERE HONG KONG'S ENJOYMENT OF E.E.C. PREFERENCES IS TO BE LIMITED, THE SAME LIMITATIONS WILL APPLY TO ALL REPEAT ALL BENEFICIARIES
ON A NON-DISCRIMINATORY BASIS SEMICOLON
(B) AS REGARDS TACTICS: IN THEIR APPROACH THE EMBASSY SHOULD AVOID ANY IMPLICATION EITHER THAT TOTAL EXCLUSION OF TEXTILES FOR HONG KONG WAS EXPECTED OR THAT WE WOULD BE RESIGNED TO
NOT HAVING THE OPPORTUNITY OF CONSULTATIONS. BOTH MAY PROVE INEVITABLE BUT, CONSIDERING HONG KONG COMES AFTER /KOREA AND
CONFIDENTIAL.