TNAG-0240-FCO40-276-Entitlement-of-Hong-Kong-to-generalised-tariffs-preferences--1970 — Page 33

CONFIDENTIAL

Mr Withard

RECORD OF THE PRIME MINISTER'S MEETI VICH MR. SATO, PRIME MINISTER OF JAPAN, AT 10 a.m. ON WEONESDAY, OCTOBER 21, 1970, AT THE WALDORF ASTORIA, NEW YORK

Also Present:

Mr. Kaichi (Foreign Minister

of Japan)

His Excellency Mr. M. S. Tsuruoka

(Japanese Permanent

Representative at the

United Nations)

Mr. Toshio Kimura

State Secretary for the Prime Minister

in

x

The Foreign and Commonwealth

Secretary

Sir Denis Greenhill

Mr. Donald Maitland

Mr. P. J. S. Moon

M. Laird (see pp 2/3)

Mr. Sato congratulated the Prime Minister on the

Conservative Party's.access in the British General

Elections.

The Prime Minister thanked Mr. Sato. He said that

Britain and Japan had much in common. We were both

trading nations and it was important for us both that

there was as much freedom to trade as possible. The

Prime Minister went on to refer to the Mills Bill and

asked if there was any possibility of the Japanese and

the Americans reaching an agreement.

Mr. Sato replied that this was a very difficult

question. He believed that the United States broadly

upheld the principle of free trade but there were

inevitably special cases where principle had sometimes

to be set aside. At his earlier meeting with President

Nixon he had thought that it would be possible to reach

agreement but in fact great difficulties had arisen,

mainly due to the fact that any arrangements had to be

acceptable to U.S. industry. lie proposed to take the

matter up again when he saw President Nixon in a few days

time. lle would seek to allay any misunderstanding or loss

of confidence.

FIDENTIAL