TNAG-0239-FCO40-275-Entitlement-of-Hong-Kong-to-generalised-tariffs-preferences--1970 — Page 73

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Anglo-Japanese Trade

33. Mr. Sato will expect the Prime Minister to make some allusion to bilateral trade questions

particularly

since Mr. Kishi (former Prime Minister and brother to

Mr. Sato) suggested to the Prime Minister on 22 September that he should raise our request on tariffs with

Mr. Sato. The Prime Minister need not, however, involve

himself in the details of the trade talks.

The object

of raising the matter would simply be to try to get them

moving again rather more rapidly.

34. The Prime Minister might say we welcome the

substantial growth of Anglo-Japanese trade which has

occurred in the last few years. We believe that its

further expansion is possible and would be to our mutual benefit. For our part, we have indicated our willing-

ness, notwithstanding the difficulties, to make an end to

the remaining trade obstacles on our side subject to a

satisfactory response by the Japanese, to include

liberalisation of items of interest to us and reductions

in the tariffs on whisky and wool cloth.

This is a

bold and imaginative approach and it would be our hope

that the Japanese Government will make an equally

courageous reply.

35. A background note on Anglo-Japanese trade is

annexed.

Foreign and Commonwealth Office, S.W.1.

13 October 1970

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CONFIDENTIAL