CONFIDENTIAL
discussions which the Embassy have had your officials 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 Government 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.
Japans decision in
this matter is likely to be crucial since the
exclusion of Hong Kong by Japan might well lead other
which
countries, take a much larger percentage of Hong
Kong exports to follow suit on burden sharing grounds. The consequences would be wide spread 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
in which our two countries have a joint interest.
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I very much hope that you will give earnest consideration to the arguments which the British
Government have put forward and will agree to include Hong Kong and other dependent territories
in the Japane se scheme.
Ends.
CONFIDENTIAL
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