TNAG-0299-FCO40-335-Entitlement-of-Hong-Kong-to-generalized-tariffs-preferences--1971 — Page 16

FCO40 Hong Kong Department Records 聯邦事務部香港部檔案 All

gins between, currencies.

Mr Hira hara described measures recently

Innounced in Japan. First there had been a change in

iscal policies. This was a basic point. The

had

apanese economy/hitherto been led by privateenterprise

nitiatives. From now on the Japanese Government would

ake the lead in economic activities. Fiscal policies

ould be strengthened. Increased attention would be

iven to social. welfare, environmental problems and

ocial capital. In addition, Japanese Ministers had

ecided upon 7 specific measures as follows:

a.

C.

by the end of September 40 items would

remain subject to residual import restrictions.

After September efforts would be made to

reduce the number to 30 within a short

period.

the fourth programme of liberalisation of

foreign investment in the Japanese market

would take effect in August. A negative list

would remain comprising about 10 categories

including leather, coal and large computers.

Colour film would be liberalised.

He was

aware that the 50-50 principle by which the

proportion of foreign capital permitted to

be invested in Japanese enterprises was

limited to 50 per cent over much of

had been criticised. Japanese industry/could not be changed..

There would however be an increase

in the categories in which 100% would be

permitted.

Government

This

the Japanese/would examine the possibility

of making both unilateral tariff cuts

CONFIDENTIAL

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