TNAG-0239-FCO40-275-Entitlement-of-Hong-Kong-to-generalised-tariffs-preferences--1970 — Page 196

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3. KARUDA CONFIRMED THAT A DECISION HAD BEEN TAKEN TO REMOVE THE COMPETITIVE CLAUSE, AS IT STOOD KOREA WOULD HAVE BEEN EXCLUDED ON 80 PER CENT OF HER EXPORTS TO JAPAN AND SHE HAD MADE STRONG POLITICAL REPRESENTATIONS TO THIS EFFECT. JONES INDICATED THAT UNLESS THE DECISION TO EXCLUDE HONG KONG WERE REVERSED WE DEPLORED THIS DECISION. THE JAPANESE SHOULD NOT ASSUME THAT IF THEY CONTINUED ON THIS COURSE WE WOULD NECESSARILY BE BOUND TO MAINTAIN OUR

PRESENT OFFER.

4. FURTHER CONVERSATION, BEING REPORTED SEPARATELY BY LETTER, REVEALED THAT USE OF POLITICAL ARGUMENTS WOULD NOT BE LIKELY TO HELP MUCH IN SHIFTING JAPANESE ON HONG KONG PROBLEM. KARUDA SUGGESTED THAT WE WOULD BE LIKELY TO ACHIEVE MORE BY PUTTING THE POLITICAL CASE MORE STRONGLY TO THE U.S.

FCO PLEASE PASS TO HONG KONG TOKYO WASHINGTON UKDEL EEC AND

UKMIS GENEVA

1

SIR J CHADWICK

[REPEATED AS REQUESTED]

INTERN..TIONAL TRADE DISTRIBUTION

T.P.D.

W.E.D.

ADDITIONAL DISTRIBUTION H.K.INT TRADE

H.K.D.

AMER DEPT.

W.RO

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