PRIORITY
CYPHER CAT A
FM TOKYO 010183Z
CONFIDENTIAL
CONFIDENTIAL
REF.
(130)
N
REF.
[NEUTRAL)
Spoke to M. Perceval.
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TO PRIORITY F C O TELNO 323 OF 1 MAY INFO HONG KONG, WASHINGTON. MANILA TELEGRAM NO 5 TO HONG KONG AND WHITEHEAD'S LETTER TO BURNS OF 23 APRIL: GENERALISED PREFERENCES.
.
OHTAKA CALLED IN WHITEHEAD EARLIER THIS WEEK TO MAKE ONE OR
TWO SUGGESTIONS QUOTE ON A PERSONAL BASIS UNQUOTE ABOUT HOW
ONE MIGHT PROCEED ON HONG KONG FOR BACKGROUND, HE EXPLAINED THAT INDUSTRY'S REACTION TO MITI SUGGESTIONS THAT HONG KONG
SHOULD BE INCLUDED IN THE JAPANESE OFFER HAD BEEN STRONGER THAN
EXPECTED AND DEBATE IN THE DIET HAD ALSO BEEN MORE DIFFICULT
THAN THE GOVERNMENT HAD FORESEEN. THERE WAS ALSO DIFFICULTY
OVER THE TIMING OF IMPLEMENTATION: THE CHOICES WERE TO IMPLEMENT FOR ALL BENEFICIARIES TOGETHER (TERRITORIES AS WELL AS COUNTRIES)
OR TO MAKE IT A 2-STAGE OPERATION WITH TERRITORIES FALLING
INTO THE SECOND STAGE. IMPLEMENTATION IN SOME FORM WOULD HAVE
TO TAKE PLACE BY 1 OCTOBER, BUT A 2-STAGE OPERATION MIGHT
MEAN THAT IMPLEMENTATION FOR COUNTRY BENEFICIARIES WOULD BE
POSSIBLE BY 1 AUGUST WITH TERRITORIES FOLLOWING IN EARLY 1972,
EITHER 1 JANUARY OR 1 APRIL. THERE WAS THE DANGER HOWEVER THAT
THE EXERCISE MIGHT RUN OUT OF STEAM AFTER IMPLEMENTATION FOR COUNTRY BENEFICIARIES AND PREFERENCES MIGHT NOT THEN BE EXTENDED
TO TERRITORIES AT ALL.
2. IN THESE CIRCUMSTANCES, OHTAKA THOUGHT THAT TACTICALLY THE
MYFA SHOULD PRESS OTHER MINISTRIES TO AGREE TO A ONE-STAGE
IMPLEMENTATION. TO DO THIS, THE HONG KONG PROBLEM NEEDED TO
BE SETTLED AS QUICKLY AS POSSIBLE. OHTAKA THOUGHT THAT IN ORDER
TO GUARD AGAINST RENEWED PRESSURES TO EXCLUDE HONG KONG ALTOGETHER,
IT WOULD BE HELPFUL IF WE COULD INFORM THE MYFA THAT WE WOULD
BE CONTENT FOR HONG KONG TO BE INCLUDED, EVEN IF THE EXCEPTIONS
LIST WAS SO LONG THAT HONG KONG RECEIVED VIRTUALLY NO BENEFIT
WHATSOEVER.
}
3. WHITEHEAD REPLIED THAT HE WAS SURPRISED TO HEAR THAT THERE
WAS SOME DOUBT ABOUT THE INCLUSION OF HONG KONG IN THE JAPANESE
OFFER. THIS WOULD REPRESENT A RETREAT FROM THE POSITION REACHED
IN JANUARY WHEN HIRAHARA HAD TOLD BOTTOMLEY THAT THERE WAS
A CONSENSUS AMONG THE MINISTRIES THAT HONG KONG SHOULD BE INCLUDED THE DEBATE IN THE DIET HAD SCARCELY TOUCHED ON HONG KONG.
HE FOUND IT HARD TO BELIEVE THAT THE JAPANESE WERE
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