TNAG-0299-FCO40-335-Entitlement-of-Hong-Kong-to-generalized-tariffs-preferences--1971 — Page 151

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M TOKYO 150390Z

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NEUTRAL

RECEIVED IN REGISTRY No.51 19 MAY 1971 NICKO

LAST

REF.

KENT

145

REF.

TO PRIORITY FCO TELNO 364 OF 15 MAY INFO PRIORITY HONG KONG

INFO WASHINGTON

OUR TELNO 265 AND HONG KONG TELNO 313: GENERALISED PREFERENCES

HONG KONG

1. MINISTER AND WAKEFIELD SAW THE DEPUTY DIRECTOR GENERAL

148

OF THE ECONOMIC AFFIRS BUREAU OF THE MINISTRY OF FOREIGN

AFFAIRS THIS AFTERNOON, THE DIRECTOR GENERAL WAS UNAVAILABLE.

MINISTER MADE THE POINTS IN OUR TELEGRAM NO 323 AND IN TELEGRAMS

UNDER REFERENCE. HE DID NOT USE THE ARGUMENT ABOUT THE INFLUENCE

OF JAPANESE DECISIONS ON THE US SINCE THE DESIRE TO EXCLUDE

HONG KONG PRODUCTS FROM BENEFIT UNDER THE US SCHEME IS ONE

OF THE MAIN ARGUMENTS OF THE MINISTRY OF TRADE AND INDUSTRY

AND JAPANESE INDUSTRY AGAINST THE INCLUSION OF HONG KONG.

OHTAKA, WHO WAS PRESENT DID MOST OF THE TALKING AND CONFIRMED

A CONTINUING LACK OF AGREEMENT BETWEEN THE MINISTRIES, BOTH AS

REGARDS THE INCLUSION OF HONG KONG IN PRINCIPLE AND THE POSSIBLE

LIST OF PRODUCTS FOR EXCLUSION. HE SAID THAT THE PRIME MINISTER

AND THE MINISTER FOR FOREIGN AFFAIRS WERE SYMPATHETIC BUT THAT

MITI HAD STILL NOT ACCEPTED HONG KONG INCLUSION. THE MINISTRY OF

FINANCE WOULD ACCEPT A CONCENSUS DECISION. MITIS RESITANCE WAS

PARTLY DUE TO THE EMBARRASSMENT OF THE CHANGE OF MIND ON HONG

KONGS EXCLUSION FROM THE SCHEME, JAPANESE INDUSTRY HAD BEEN TOLD

OF HONG KONGS EXCLSUION LAST YEAR; THE MINISTRY OF FOREIGN AFFAIRS

HAD HAD TO ACCEPT THIS AT THE TIME IN ORDER TO ACHIEVE A BETTER

GENERAL OFFER FOR UNCTAD. AFTER THE PRIME MINISTERS MEETING

/WITH

PA 1945.

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