TNAG-0298-FCO40-334-Entitlement-of-Hong-Kong-to-generalized-tariffs-preferences--1971 — Page 22

RESTRICTED

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W Dorward Esq

Commerce and Industry Department

HONG KONG

British Embassy

TOKYO

6 April 1971

122

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RECEIVED IN

REGISTRY No. 51

-21

f

115

GENERALISED PREFERENCES

Thank you for your telegram No 227 to the FCO which was copied to us.

2. As far as your paragraph 8 is concerned, there appears on further checking to have been only one question asked in the Diet in which specific reference to Hong Kong was made. This was asked by a Socialist Party Diet Member, Mr J Nakamura, who is not known to us. The question was simply "what is the Government's attitude towards Hong Kong on generalised preferential tariffs?" It was answered by Mr Sato, the Prime Minister, in the following terms:

"We have received a strong request from the British Government for us to treat Hong Kong as a beneficiary country. Though Hong Kong is a Dependent Territory of the United Kingdom, it has its own system of trade and also it is one of Japan's neighbours. Therefore it is not unsuitable to include Hong Kong in the list of beneficiaries. However, since Hong Kong is very competitive in many light industry fields, we will of course, ensure that local industry will not be damaged very much".

AU

!

3. As you may have seen from our telegram No. 265 of 1 April to the FCO the Generalised Preferences Bill passed the Japanese Diet on 29 March. There seems to have been no particular reason for the question to have been asked when it was and how it was, except that the Bill was being debated in the Diet at that time. As regards the answer to the question, you will of course wish to bear in mind the point which Otaka of the Ministry of Foreign Affairs made to me on this point on 25 January (see paragraph 5 of my minute of 26 January which was enclosed with Peter Wakefield's letter to Britten in the FCO of 29 January).

4. As far as documentation is concerned, although the Bill has now passed the Diet, there is still something to play for on the question of which Hong Kong export items will be included in the Japanese offer. In this the role of MITI will be most important. We therefore hope that you will be able to let us have the documentation referred to in your telegram under reference as quickly as possible together with documents to substantiate the points in your paragraph 6.

cc KF X Burns Esq

Trade Policy Dept

1. City TE MR LAMBERT

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J S Whitehead

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