TNAG-0240-FCO40-276-Entitlement-of-Hong-Kong-to-generalised-tariffs-preferences--1970 — Page 47

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of their Kennedy Round tariff roductions on a unilateral basis. feel they must continue to accord China in treatment and that this aplios to references. This will be done whether or not China gals to be a beneficiary.

Dependent Territories'

Other than ilong Kong (see below), Japan will include all those for which beneficiary status has so far boot claimed. This includes oll the other UK dependent territories (in Cing Cibreltor, the West Indian Asstgated States and those in the Middle East, which were listed at the last session of the UNCAAD Scoil Committee), the Australian, New Zealand and Netherlands dependencies (he was not aware of the US claim for their dependent territories).

end Portugal have not yet put in claims for their dependencies they

Since Trendl will not be included but the French termitories will benefit if auch a clein is made. Apparently the same offer is not open to Portugal. Iong Kong

that

I

Fr Endo explained that the argument was continuing in Tokyo. The Ministry of Foreign Affaire wes now strongly in favour of Hong Yong' Inclusion, while the IQI was against. The matter would have to go so the Cabinet for decision but this would be put off until the last possible moment before the legislation had to be published. informed ir Endo/Tron our discussions with the 330 we were now very hopeful that Hong Kong would be included within the MMC scheme, although not necessarily in respect of textiles and footwear which the Americans and we not Cootwear - hed excluded. This would nole it difficult for the US to exclude Hong Kong altogether and

we would therefore intend to press Japan nore strongly to com Auto

ine with the other major donors.

10

/. I thanked in Endo for all whic information and said the we welcomed very much the new Japanese position. He then asked a to explain our position on each of the probles countrics and this ( 456 In femiliar terms, pointing out thet we still had to take into accenni future decisions by the USA and EEC before making up our om, vind However the probable intentions of Japan would also be taken inso Eccount.

I am circulating this record widely since I think that thoon concerned with discussing the problem of beneficiaries with the USA and EEC will like to mow of the new Japanese position. shall see how far they retreat from it when the intentions of the USA and BBC become known.

Kemmer.

(Circulation list overleaf)

RETRIC D

O NI KIS

CREL

30 November 1970