TNAG-0240-FCO40-276-Entitlement-of-Hong-Kong-to-generalised-tariffs-preferences--1970 — Page 217

CYPHER/CAT A

CONFIDENTIAL

302)

PRIORITY UNNIS GENSVA TO FOREIGN AND COMMONWEALTH OFFICE

TEL.NO. 772

CONFIDENCIAL 02/17452

[HEUTRAL]

2 NOVEMBER 1970

ADDSD TO F C O TEL NO 779 OF 2 NOVEMBER REPTD FOR INFMN TO HONG KON TOKYO WASHINGTON AND UKDEL BRUSSELS

TOKYO TELEGRAM TO F C O NO 795.

GENERALISED PREFERENCES

FROM JONES.

PAKA

THE OBVIOUS WAY ROUND MITI'S COMMITMENT TO THE JAPANESE TEXTILE INDUSTRY IS TO EXCLUDE HONG KONG FROM THE JAPANESE OFFER ON TEXTILES ONLY BUT TO INCLUDE HER FOR OTHER PRODUCTS. SUGGESTION WAS MADE TO THE EEC COMMISSION IN SIMILAR CIRCUMSTANCES (UKMIS GENEVA TELEGRAM TO F C O NO 785 OF A OCTOBER)

THIS

ΤΗ

2. THE JUSTIFICATION FOR SUCH A PARTIAL EXCLUSION COULD BE THAT BO THE US AND THE UK HAVE EXCLUDED TEXTILES FROM THEIR OFFERS. ANOTHER REASON, TICH MAY APPEAL TO JAPAN, IS THAT, IF JAPAN NEGOTIATES A VOLUNTARY RESTRAINT AGREEMENT FOR HER EXPORTS OF NON- CUTTON TEXTILES O THE US, HONG KONG WILL UNDOUBTEDLY BE REQUIRED TO NEGOTIATE A SIMILAR ARRANGEMENT.

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3. AS THE LATTER ARGUMENT WOULD ALSO APPLY TO TAIWAN AND SOUTH KOR THERE WOULD BE A STRONG CASE FOR EXCLUDING THESE COUNTRIES ALSO FROM THE JAPANESE OFFER ON TEXTILES.

4. ACTION ALONG THESE LINES WOULD FULLY MEET THE NISGIVINGS IN THE FIRST TWO PARAGRAPHS OF THE TELEGRAM UNDER REFERENCE. IT WOULD A BE UNLIKELY TO CAUSE DIFFICULTIES WITH UNCTAD: INDEED MOST DEVELO ING COUNTRIES COULD BE EXPECTED TO WELCOME IT.

F C O PASS TO HONG KONG TOKYO WASHINGTON AND UKDEL BRUSSELS

SIR E. MELVILLE

[REPEATED AS REQUESTED]

INGERNACIONAL TRADE DISTRIBUTION:

TRADE POL.D.

DDDDD

JKK 6/1

CONFIDM.TIAL

ADDITIONAL DISTRIBUTION:

HONG KONG INTERNATIONAL

TRADE.