TNAG-0239-FCO40-275-Entitlement-of-Hong-Kong-to-generalised-tariffs-preferences--1970 — Page 69

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(2) our intention, once we are in, to work for

an outward-looking Community;

(3) the fact that Britain will continue to have

worldwide interests, which we shall be able to

promote more effectively as a member of an

enlarged Community.

INTERNATIONAL TRADE QUESTIONS

Hong Kong and the UNCTAD Generalised Preferences

19. The various Japanese Ministries concerned are

divided in their attitude on this subject, although those

advocating the exclusion of Hong Kong from the scheme

seem the stronger side. It might just redress the

balance if the Prime Minister were able to arouse

Mr. Sato's personal interest in the matter by convincing

him of the dangers of excluding Hong Kong.

20. He might say that we hope that Japan will not

exclude Hong Kong from her offer of generalised prefer-

ences. The Japanese argue that Hong Kong is a dependent

territory and therefore our responsibility.

This is

irrelevant in the context of the developing world. We

recognise that Hong Kong is competitive in some products

but this can be overcome by the use of safeguard arrange-

ments. Other developing countries, such as South Korea

and Taiwan, are no less competitive; Hong Kong merely

seeks avoidance of discrimination.

large trade deficit with Japan and is her third largest

Hong Kong has a

customer. A decision by Japan to exclude Hong Kong

which encouraged others to do likewise would have adverse

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CONFIDENTIAL