turn bring benefits to Hong Kong.

Generalised Preferences (GPS)

8. The then Japanese Foreign Minister,

Mr. Aichi undertook to the Secretary

JMr.

of State last year that Hong Kong

would definitely be included in the

proposed Stage II of the Japanese GPS

(to be introduced next April). The

Hong Kong Government has been engaged in

talks with the Japanese about the terms

on which Hong Kong might be admitted, i.e.

the special restrictions which Japan would

feel necessary to apply. Hong Kong's concern is to secure equal treatment with South Korea and Taiwan. The Japanese have not so far produced any list of GPS items to which they would not feel able to give benefits in respect of

imports from Hong Kong.

9. The Secretary of State will be pressing Japanese Ministers to bring their bilateral discussions with Hong Kong to an early

conclusion. This should be on a fair basis in

о

IN THIS MARGIN

relation to the treatment a ccorded to Hong

Kong's competitors so that Mr Aichi's promise

can be fulfilled. We continue to press

Hong Kong's case for inclusion in other

donor's schemes from which she has been

or might be excluded (e.g. United States, Denmark).

CONFIDENTIAL

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