CYPHER/CAT A AND BY BAG
CONFIDENTIAL
WIVEDIATE FOREIGN AND COMMONWEALTH OFFICE
TELHO 650
ADVANCE Vidig thing Lope Дере (Spare copy)
TO TOKYO
11 SEPTEMBER 1970 (NTU)
CONFIDENTIAL.
NEUTRAL
ADDRESSED TO TOKYO TERMO 650 OF 11 SEPTEMBER REPEATED FOR
FORMATION TO GOVERNOR HONG KONG AND SAVING TO WASHINGTON
UKDEL EEC UKHIS GENEVA UKDEL OECD.
MIPT.
GENERALISED PREFERENCES,
FOLLOWING IS TEXT OF MESSAGE,
BEGINS:
(212)
1 UNDERSTAND THAT YOUR GOVERNMENT ARE STILL CONSIDERING WIETHER OR NOT HONG KONG WILL BE A BENEFICIARY OF THE JAPANESE OFFER UNDER THE GENERALISED PREFERENCES SCHEME, I WISH TO ASK FOR YOUR PERSONAL HELP OVER THIS QUESTION, TO WHICH THE BRITISH GOVERNMENT ATTACH GREAT IMPORTANCE.
2.
OUR ARGUMENTS FOR THE INCLUSION OF HONG KONG BY JAPAN WERE FULLY SET OUT IN AN AIDE MEMOIRE WHICH OUR EMBASSY PRESENTED TO YOUR MINISTRY ON 18 AUGUST. I UNDERSTAND THAT IN SUBSEQUENT DISCUSSIONS WHICH THE EMBASSY HAVE HAD WITH YOUR OFFICIALS, THE LATTER HAVE EXPRESSED THE VIEW THAT LEGALLY DEPENDENT TERRITORIES ARE THE RESPONSIBILITY OF THE METROPOLITAN POWER AND HENCE SHOULD BE EXCLUDED FROM THE SCHEME. I MUST CONTEST THE VIEW THAT DEPENDENT STATUS JUSTIFIES ANY DISCRIMINATION AGAINST SUCH TERRITORIES IN THE CONTEXT OF MEASURES DESIGNED TO HELP THE ECONOMIC DEVELOPMENT OF DEVELOPING COUNTRIES GENERALLY, THE BRITISH COVERNMENT WOULD FIND SUCH DISCRIMINATION PARTICULARLY DIFFICULT TO ACCEPT IN THE CASE OF HONG KONG WITH ITS UNIQUE DEPENDENCE ON THE PRODUCTION AND EXPORT OF MANUFACTURES, JAPAN'S DECISION IN THIS MATTER IS LIKELY TO HAVE GREAT WEIGHT SINCE THE EXCLUSION OF HONG KONG BY JAPAN MIGHT WELL LEAD OTHER COUNTRIES WHICH TAKE A MUCH LARGER PERCENTAGE OF HONG KONG EXPORTS TO FOLLOW SUIT ON BURDEN SHARING GROUNDS, THE CONSEQUENCES WOULD BE WIDESPREAD DISCRIMINATION IN FAVOUR OF HONG KONG'S COMPETITORS AMONGST DEVELOPING COUNTRIES, WITH THE SERIOUS RISK OF THREATS TO HONG KONG'S SOCIAL AND
POLITICAL STABILITY WHICH IS OF CONCERN TO BOTH OUR COUNTRIES./30
COMFT DEVITAT
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