TNAG-0240-FCO40-276-Entitlement-of-Hong-Kong-to-generalised-tariffs-preferences--1970 — Page 128

223

234

CONFIDENTIAL

(UY MOR

کا

R&R bm

En

34

Office of the British Chargé d'Affaires 4

PEKING

234

337

16 November 1970

Devi Michael,

Fley M

In Mugen M

п

26.11

1/xi

In By then HB 1/4

Bythen

indies Lense

This indies

Eɣanin

Hong Kong and Generalised Freferences

Thank you for your letter of 24 September covering a copy of Jones' letter GVA/10/8/1 of 11 September from Geneva which I have just seen after returning from the Canton Trade Fair and Hong Kong.

FlagN

2.

I am not surprised to hear that the Japanese are jealous of Hong Kong's position in several respects:

26.

(a) as a source of information and channel of contact between

China and the West it contributes to what remains of our special relationship with the Americans, and correspondingly reduces Japan's potential advantage in this respect;

(b) Hong Kong is an alternative focus, small but not insignificant

(viz. recent Indian attempts to benefit from technical cooperation with Hong Kong, and the visit a few months ago of Lee Kuan Yew) for the economic and security allegiances of other countries in Asia over which Japan is now pretty clearly keen to have a dominant influence;

(၁)

the Japanese may well calculate that without Hong Kong as a source of foreign exchange and (a factor which has in the past been under-rated) economic information and techniques, China would be much more dependent upon Japan, to the latter's political and economic benefit;

(a) Hong Kong is a direct trade rival of Japan on a not

insignificant scale in some sectors (electronics, textiles, plastics).

3. As you say it is in everyone's interest that we should preserve Hong Kong's stability and prosperity. In securing Japanese cooperation, we might argue:-

E.0. Laird, Esq.

Hong Kong De artment

Foreign and Commonwealth Office

LONDON, S.W.1

/(a)...

CONFIDENTIAL

HICK6/12