TNAG-0299-FCO40-335-Entitlement-of-Hong-Kong-to-generalized-tariffs-preferences--1971 — Page 114

Mr Gallagher

Private Secretary

CONFIDENTIAL

in Cla

/24/502.

fur Labykest

ビ

th

245-

HONG KONG AND THE JAPANESE SCHEME OF GENERALISED PREFERENCES

A

B

PROBLEM

1.

Answering a question in the Diet on 23 March, Mr Sato

declared, with certain qualifications, that Hong Kong was

"not unsuitable" as a beneficiary in the Japane se scheme of

generalised preferences, which is to start before 1 October

Recent contacts with the Japanese Foreign

this year.

Recent

Ministry have revealed, however, that it is still far from

certain that Hong Kong will be included in the first stage

of implementation of the Japane se scheme, and may be

relegated to a vague second stage with other "problem"

Even if Hong Kong secures inclusion ab

beneficiaries.

initio, it may be subject to excessively drastic restrictions

on "sensitive" products. The latest approach by HM Embassy

in Tokyo have brought out the fact that there is a so-far

unresolved dispute over Hong Kong's inclusion between the

Japanese Ministries of Foreign Affairs (sympathetic) and International Trade and Industry (unsympathetic). The

Ambassador advises that a personal message from the Prime

Minister to Mr Sato offers the only hope of resolving this

deadlock in a sense favourable to Hong Kong.

ARGUMENT

2. The original Japane se intention was to exclude Hong

Kong as a beneficiary, and the Ministry of International

RECEIVED IN REGISTRY No.51 25 MAY 1971

JHUN 6/1

CONFIDENTIAL

/Trade