TNAG-0240-FCO40-276-Entitlement-of-Hong-Kong-to-generalised-tariffs-preferences--1970 — Page 167

CYPHER CAT/A

PRIORITY TOKYO

CONFIDENTIAL

TO FOREIGN AND COMMONWEALTH OFFICE

TELEGRAM NUMBER 811

9 NOVEMBER 1970

316

CONFIDENTIAL 090500Z

[NEUTRAL]

300)

32x

ADDRESSED TO F C O TEL NO 811 OF 9 NOVEMBER R1 GOVERNOR HONG KONG, WASHINGTON, UKMIS GENEVA AND UKDEL EEC BRUSSELS.

302)

UKMIS GENEVA TELEGRAM NUMBER 772 AND YOUR TELEGRAM NUMBER 2498 TO WASHINGTON: GENERALIZED PREFERENCES.

(309)

WE AGREE WITH JONES THAT A PROPOSAL TO THE JAPANESE TO EXCLUDE HONG KONG FROM THEIR OFFER ON TEXTILES BUT TO INCLUDE HER FOR OTHER PRODUCTS WOULD BE WORTH MAKING. SUBJECT TO HONG KONG’S VIEWS, WE SHOULD BE GRATEFUL FOR AUTHORITY TO PUT THIS TO THE JAPANESE AT AN EARLY DATE. BUT WHILE SUCH AN OFFER WOULD UNDOUBTEDLY HELP, THERE IS NO GUARANTEE THAT THE JAPANESE WILL TAKE A DECISION FAVOURABLE TO HONG KONG EVEN IF TEXTILES WERE EXCLUDED. THEY HAVE ALREADY MENTIONED DIFFICULT HONG KÔNG ITEMS SUCH AS DOLLS AND OTHER SUNDRY EXPORTS (SEE WHITEHEAD'S

LETTER TO DRITTEN OF 21 AUGUST WHERE THE JAPANESE SAID THAT

THE INCLUSION OF HONG KONG COULD WELL MEAN THE DIFFERENCE OF 7

ITEMS ON THE JAPANESE EXCEPTIONS LIST).

2. THE EXCLUSION OF TEXTILES WOULD, HOWEVER, BE OF MUCH MORE INTEREST TO THE JAPANESE THAN SOMETHING ALONG THE LINES OF

THE QUOTE BARGER SUGGESTION UNQUCTE SINCE HONG KONG ALREADY

ACCOUNTS FOR MORE THAN 50% OF JAPANESE IMPORTS IN SEVERAL TEXTILE

FIELDS. ONE POSSIBILITY MAY BE TO COMBINE AN OFFER TO EXCLUDE

TEXTILES WITH AN AGREEMENT TO LIMIT PREFERENTIAL ARRANGEMENTS TO

THE LEVEL OF EXISTING TRADE IN ONE OR MORE OF THE OTHER ITEMS

WHICH ARE SENSITIVE FOR THE JAPANESE. THIS WOULD CLEARLY BE A FINAL

ATTEMPT TO MOVE THE JAPANESE AND A SIMPLE EXCLUSION OF TEXTILES

COULD BE TRIED FIRST.

13.

нккыр

CONFIDENTIAL