TNAG-0299-FCO40-335-Entitlement-of-Hong-Kong-to-generalized-tariffs-preferences--1971 — Page 116

NOTHING TO BE WRITTEN IN THIS MARGIN

URITY CLAN ICATION

Top Secret.

Secret.

Confidential.

Restricted.

Unclassified.

PRIVACY MARKING

..In Confidence

MANAGE

Letter

To:-

PJS Moon Esq

10 Downing Street

}

Type i +

From

Private Secretary

Telephone No. & Ext.

Department

Copy to:-

CJ Farrow Esq

DTI

HONG KONG AND THE JAPANESE SCHEME OF GENERALISED

PREFERENCES

1.

3.

H M Ambassador in Tokyo reports that Hong Kong's

prospect of inclusion in the Japanese generalised

preference scheme is running into serious difficulties

because of persistent opposition by the Ministry of

Trade and Industry. He recommends a message from the

Prime Minister to Mr Sato as offering the best hope of

a favourable resolution of this impasse. (Tokyo telegrams

Nos 364 of 15 May and 375 of 18 May, copies attached)

It remains very important, both to us and to

Hong Kong that the Japanese should accept Hong Kong as

a beneficiary, not least because the Americans have

made it plain that they mean to use the Japanese

decision as an example. The Japanese Foreign Ministry

themselves have said that the only way to break the

present inter-Ministerial deadlock in Tokyo in a sense

favourable to Hong Kong is a further approach at

Prime Minister level. We believe that this would give

our friends in this domestic Japanese debate the

additional ammunition they require, and hope that it

would clear the way for an early visit to Tokyo by

Hong Kong officials which would help to put into

perspective Japanese apprehensions. We should then

have a further opportunity to tackle the Japanese (if

it still seemed necessary) when their Foreign Minister

1

CONFIDENTIAL

1

/comes