TNAG-0239-FCO40-275-Entitlement-of-Hong-Kong-to-generalised-tariffs-preferences--1970 — Page 46

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will

270

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Хелан

ракко

HOFO #02/20

CYPHER CAT/A

PRIORITY GOVERNOR HONG KONG

TC F.C.C. LONDON

TELECRAP NC 729

DATED 20 CCTOBER 1978

CONFIDENTIAL 2 VA30Z

ADDRESSED F.C.0. TELMO 729 OF 22 OCTOBER REPEATED TO TOKYO, WASHINGTON, UKDEL BRUSSELS AND UKMIS GENEVA.

CNEULAL

TOKYO TELEGRAM 7/8: PREFERENCES.

267

275

CATER, DIRECTOR OF COMMERCE AND INDUSTRY, HAS SPOKEN TO WAKEFIELD. SINCE THE JAPANESE OFFER AS SET OUT IN THE PCCUMENT REFERRED TO IN PARA. 3 OF THE TELEGRAM UNDER REFERENCE WOULD APPEAR TO PROVIDE ADEQUATE SAFEGUARDS FOR JAPANESE INDUSTRY, IT WAS AGREED THAT THE LINE SHOULD BE FIRST TO TRY TO FIND CUT WHAT IN PARTICULAR REALLY WORRIES THE JAPANESE ABOUT INCLUDING HONG KONG.

2.M AT THE SAME TIME IT MIGHT BE WORTH REHEARSING THE ARGUMENTO PUT FOR ARD IN THE AIRE MEMOIRE AND THE PERSONAL MESSAGE FROM SECRETARY OF STATE TO AICHT, EMPHASIZING CNCE AGAIN THAT HONG KONG'S MATH CONCERN IS NOT TO BE DISCRIMINATED AGAINST VIS- A-VIS HER COMPETITORS SEMICOLON THAT IN ANY CASE EXCLUSION OF HONG KONG WOULD NOT NECESSARILY END OR PREVENT COMPETITION WITH JAPANESE INDUSTRY IN JAPAN'S DOMESTIC MARKET RUT YOULD MERELY HAVE THE EFFECT OF DIVERTING HONG KONG'S SHARE OF TRADE TO OTHER EXPORTING COUNTRIES. LIM IS FULLY BRIEFED ON STATISTICAL INFORMATION THAT MAY BE REQUIRED FOR THE PROPOSED MEETING WITH MITI AND CAN STAY FOR THE MEETING PROVIDED IT IS HELE IN THE HEXT FEW DAYS.