TNAG-0240-FCO40-276-Entitlement-of-Hong-Kong-to-generalised-tariffs-preferences--1970 — Page 25

NOTHING TO BE WRITTEN IN THIS MARGIN

ILI

SECURITY CLASSIFICATION

Top Secret

Secret

Confidential

Restricted

Unclassified

PRIORITY MARKINGS

Flash Immediate Priority

Routine

}

*

(Date)

Despatched

icati aqúiessee(s)

PRIVACY MARKING

In Confidence

[Security_classification

any

CONFIDENTIAL

En Clair.

[

Privacy marking -if any

1

Code Cypher

[Codeword-if any]

Draft Telegram to:-

Hong Kong

No.

(Date)

And to:-

Repeat to:- Tokyo

Washington

270

UKDEL Brussels UKMIS Geneva

Saving to:

Distribution:-

Copies to:-

Addressed to

HONG KONG

telegram No....

..(date)

And to

repeated for information to PRIORITY TOKYO & ROUTINE WASHING-

TON, UKDEL BRUSSELS, UKMIS GENEVA

Saving to.............

Your tel. 729:

Preferences.

The Prime Minister raised the question of Hong

Kong with Mr. Sato at their meeting in New York on

21 October. The record of the meeting reports Mr.

Sato as replying that this was quote a very difficult

matter for them largely because of Hong Kong's tariff

arrangements unquote. He also mentioned (a) that the

Japanese yen was freely used in Hong Kong and the yen conversion rate in Hong Kongaffected Japanese trade; and (b) that there were cases where Japanese products were sold in third markets disguised as Hong Kong

goods, which quote could be to Japan's disadvantage

when they were calculated against the total permitted level of Japanese imports. unquote.

2.

We are not sure what is meant by Mr. Sato's refer-

ence to quote Hong Kong's tariff arrangements unquote.

fünf-yea This may refer to the Commonwealth preference on car

1

GA

CONFIDENTIAL