TNAG-0239-FCO40-275-Entitlement-of-Hong-Kong-to-generalised-tariffs-preferences--1970 — Page 68

CONFIDENTIAL

and Japan have a common interest in securing our material

stakes in the area. The Prime Minister might emphasise

the urgent neud for a political settlement of the

Arab-Israeli dispute as the basis of any lasting stability

in the region and our hope that the Japanese will use

their political. influence in the Arab world in support of

a political settlement which would be fair to both sides.

However, the prospects for a settlement are not good at

not

present.

East-West Relations

17. Mr. Sato may ask about East-West Relations,

· particularly in Europe. The Prime Minister may wish in

that event to assure him that we hope for an era of

negotiation, and are prepared to contribute to the develop-

ment of détente. Berlin is the touch-stone of Russian

sincerity.

Until there is progress on this issue it will

not be possible to judge the Soviet Union's intentions in

regard to negotiations on other issues, particularly in

regard to their proposal for a conference on European

security. We would see advantage in a conference if it

had a real prospect of making progress on concrete issues.

E.E.C.

18. The Japanese are keenly interested in the question

of Britain's entry into the Community. If asked about

this, the Prime Minister might stress three points: -

(1) Our determination to get into the Community,

for both political and economic reasons,

provided that we can get fair terms;

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CONFIDENTIAL