TNAG-0298-FCO40-334-Entitlement-of-Hong-Kong-to-generalized-tariffs-preferences--1971 — Page 176

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CONFIDENT IA L

RECORD OF A MENTING BETWEEN MR JR A BOTTOMLEY, DEPUTY_UNDER

SECRETARY OF STATE, FCO AND MR HIRAHARA, DIRECTOR-GENERAL, ECONOMIC AFFAIRS BUREAU, MyFA ON 27 JANUARY

Present:

Mr Bottomley

Mr Wakefield

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Mr Whitehead

Mr Hirahara

Mr Ara fune

1.

On generalised preferences Mr. Hirahara said that a decision had been taken among Ministries to include Hong Kong in the Japanese offer; final approval would, of course, have to be given by the

Diet.

The inclusion of Hong Kong would be qualified since a certain number of Hong Kong export items would be excluded from the Japanese offer. He hoped that this was welcome news. Mr. Bottomley said that it was, but how welcome depended upon the items for which Hong Kong would be excluded and on Japan's attitude towards Hong Kong's main competitors, Taiwan and Korea. Mr. Hirahara countered that the

Mr. Japanese position on Hong Kong had already moved a long way. Bottomley said that he hoped Japan would also be able to include other dependent territories. Mr. Hirahara replied that at this moment he thought this would be difficult since the majority of dependent territories had few of the independent characteristics of Hong Kong. Mr. Wakefield asked when it would be convenient for Hong Kong officials to visit Japan for discussions about the items which the Japanese might think of excluding. Mr. Hirahara replied that the best time for such discussions would be in April or May, after the Generalised Preferences Law had been passed in the Diet. Mr. Wakefield also enquired whether China would be a beneficiary. Mr. Hirahara said that in principle the Japanese Government would not include China in their offer. From a purely political point of view, however, if China asked for preferential duties, Japan might be prepared to consider the matter. But he was not sure about this.

2.

Mr. Hirahara enquired whether Mr. Bottomley had also discussed

Mr.. the problem of the Japanese tariff on imported Scotch whisky. Bottomley replied that he would be discussing this with the Ministry of Finance but he had been warned that he might not obtain a very favourable reply. Mr. Hirahara commented that whisky had just been liberalised and he thought that the Ministry of Finance would take

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CONDIDERIM TAL

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