CONFIDENTIAL
3.
There were at least 2 schools of thought on how best to proceed from now onwards. One school suggested that it would be simpler to include all country beneficiaries in a first stage implementation which might take place at the earliest by the beginning of 'ugust or at the latest by the beginning of October. This would be followed by a second stage, covering territory beneficiaries (such as Hong Kong and other dependent territories). Such a second stage might well be delayed until 1 January 1972 or even 1 April of that year. On the other hand, both ato, the Prime Minister and Miyazawa, the Minister of International Trade & Industry, had come down firmly in the past 2 weeks in favour of a one-shot implementation by 1 Cctober this year. Miyazawa is at present on a visit to Australia and New Zealand and will not return until early May. Tanaka expected however, that decisions on implementation would be taken shortly thereafter.
4. In reply to a question, Tanaka said that MITI had still not produced its first list of Hong Kong export items which would be excluded from the Japanese offer. He explained in confidence that this was because of a continuing row between the International Trade and the Textile and General Merchandise Bureaus in that Ministry. The former was working to produce some semblance of a reasonable offer for Hong Kong. The latter had initially been reluctant to consider the question at all and has only started to sound out the relevant sectors of industry in
February.
Industry's reaction had been thoroughly negative and as a result the Textile and General Merchandise Bureau was still taking the line that virtually all Hong Kong export items should be excluded. I reminded Tenaka that for some months we had been pressing for & visit to Tokyo by Hong Kong officials to discuss items of Hong Kong exports which the Japanese consider to be sensitive. I was sure that officials would be prepared to come from Hong Kong at any moment which might be helpful in resolving the argument in MITT (perhaps Hong Kong would let us know if there are any particular periods in the next 3 months which would be inconvenient for them to come to Tokyo). Tanaka undertook to put this point to Otaka when he returns next week; we shall do our best to keep this possibility in the front of his mind.
5. Tanaka gave me the strong impression that the other dependent territories would be included in the Japanese list of beneficiaries. I do not think however that a final decision has yet been taken.
J S Whitehead
Copied to:
R B Crowson Esq, FED, FCO OH Kemmis Esq, CRED, DTI W Dorward sq, Hong Kong HB Walker Esq, Washington
- 2
C
UKDEL EEC, Brussels UKDFL OECD, Paris UKMIS Geneva
CONFIDENTIAL