TNAG-0298-FCO40-334-Entitlement-of-Hong-Kong-to-generalized-tariffs-preferences--1971 — Page 101

6/1

British Embassy

TOKYO

4 March 1971

93

GANERALISED PREFERENCES

1 *

Thank you for your letter CR/EIC 1103/1 XI of 25 February. We are indeed very much aware that the American decision on Hong Kong has been dependent on the attitudes of the EEC and Japan. You will now have seen a copy of John Whitehead's letter to Burns in Trade Policy Department in the FCO (6/1) of 25 February which deals with this very point.

2. However, there is I fear no chance that the Japanese at this stage would be prepared to issue publicly a definite statement of intent to include Hong Kong even on an unspecified qualified basis. Although it may be argued that we should only be seeking such a statement on a confidential basis, we should nevertheless wish to. pass it on to the Americans and the chances of a leak would be extremely great. The position on Hong Kong within the Japanese Government is sufficiently delicate (see Whitehead's minute of 26 January, particularly paragraphs 3, 5 and 6 which was enclosed with my letter to Britten of 29 January) that it would be impossible for the Ministry of Foreign Affairs to make a statement of the sort which you are seeking. However, they have gone far enough in the ir assurances on Hong Kong that there can be little doubt on the part of the Americans that Hong Kong will be included in the Japanese offer. As you know, the US Ambassy here is well aware of the situation both from talking to us and the Japanese. The real question now is how restrictive the Japanese, and hence perhaps the American, list on Hong Kong will be.

PGA Wakefield

W Dorward Esq

Commerce & Industry Dept

Hong Kong

Copies:

RG Britten Esq., Trade Policy Dept., FCO DJC Jones, Esq., Geneva

A H B Hermann, Esq., Washington OH Kemmis Esq., CRED, DTI

RECEIVED

REGISTKY N6.01

HICKO

CONFIDENTIAL