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LR W HUCIES - SEC.
JAPAN BENEFICIARIES
Mr Endo of the Japanese Zabasoy came to see me on Friday 27 November to tell me Japan's position on the question of beneficiaries of their scheme of generalised proferences. The timing of this vielt appeared to be intended to prepare us for the private meeting betwoon the major donor countries arranged for today just before the OUD Trade Committee. The Japanese representative was apparently in Brussels on Friday having a similar conversation with the DEC Commission.
2. The Japanese have made a major change in their intentions. Hitherto they have made it clear that they would extend their proferences only to members of the Group of 77. They have now decided to include virtually all the countries likely to claim developing status - the only significant exceptions being the Soviet Bloc and Hong Kong. Ar lindo emphasised that confirmation from the Cabinet was still required and that their prosent intentions could still be modified if the other major donors exclude any significant beneficiaries. It is not clear whether the US condition on reverse preferonces affects the Japanese position. The final list of beneficiaries will be included in the draft legislation which will be submitted to the Diet in January or February
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3. The position on each of the problem countries is as follows: Whe lediterranean
It has been decided to include the four OECD developing nombore Spain, Portugal, Greece and Turkey (ir Endo confouuel that Japan was well aware that existing imports from then were negligible). Iorcel, Malta and Cyprus will also be included.
The Group of 77
Japan has dropped their insistence that those developing courbylos
mainly African- that invoke GATT Articlo XXXV against Javen should agree to give her exports mîn treatment. All the Group of 77 including Yugoslavia will therefore be included together with Piji that has just become independent.
The Soviet Bloc
From this Group only Rumania and Bulgaria have claimed dovoloving status. Japen will exclude then on the sonorhat legalistic argunent that since Group D supported the New Delhi Resolution on preferences ao prospective donor countries they should not now claim to be beneficiaries. It appears that Albania also will be excluded.
China
Japan has decided to include mainland China together with ongolia, Horth Vietnam, North Korea and Cuba. Their argument for including China is a curious ono. Apparently Japan accorded China the bonadto
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