TNAG-0299-FCO40-335-Entitlement-of-Hong-Kong-to-generalized-tariffs-preferences--1971 — Page 130

and textile industry.

CONFIDENTIAL

-3-

I said that Hong Kong was prepared,

I

and indeed anxious, to act in a reasonable and responsible

fashion, but was faced with certain fairly obvious problems

on how best to set about things in the given situation.

expressed the hope that Ambassador Kennedy would discuss

these problems fully and frankly while in Hong Kong. Mr Semuels

said that he was sure Ambassador Kennedy would welcome the

opportunity to do just this. Mr Samuels hoped that Mr Kennedy

had been able to have serious talks with the Japanese, particularly

about the Japanese-American difference of view over restraint

by categories of textiles or by a global total. He had not

yet seen reports of Mr Kennedy's talks in Tokyo (I commented that

our Embassy did not seem to have had much success, so far,

in finding out how things had gone).

7.

I commented that it would be difficult for the

Hong Kong Government to convince their textile industry of

the need for measures of self-restraint going on beyond

what the Japanese had imposed upon themselves. At the same time,

we felt that Hong Kong had to consider its position carefully

vis-à-vis the American Administration and also vis-à-vis

the Japanese authorities in both cases not least in respect

of the question of beneficiary status under the General

Preferences Scheme. Mr Samuels said that he thought the

US Administration would regard it as perfectly natural and

proper for Hong Kong to do the same as the Japanese and no

more though of course it was hoped in Washington that the

Japanese would do more than they had so far agreed to. On

some/