TNAG-0299-FCO40-335-Entitlement-of-Hong-Kong-to-generalized-tariffs-preferences--1971 — Page 19

valued with t- sult that the goods of that country

had a competitve edge this would cause stresses. He

would like to know the significance of the wide range

of products over which Japan maintained control of

exports. Did this mask realities?

Mr Hira hara said that the seven points decided

by Japanese Ministers had included a detail which had

not so far been mentioned. The Government intended

to consider the establishment of more orderly

marketing overseas.

He had personal doubts about

this policy. It was impossible to control exports

Japan

without administrative guidance. This was inconsistent

with the ideal of freer trade. But many Japanese

Ministers favoured more orderly marketing.

practised this in regard to the US for textiles and

steel and had also certain private understandings

with the EEC. Mr. Sanders thought that this re-

inforced his point. While orderly marketing had a

place in dealing with particular situations it was

not the answer to problems stemming from a wrong

exchange rate.

OIL

Mr Beckett expressed appreciation of recent

opportunities of discussing oil matters with the

Japanese. After the OPEC resolution demanding price

increases, arrangements had been made for all the oil

companies to meet and hold discussions, backed by

mutual arrangements.

This was a great advance. The

arrangements for keeping consumer governments informed

had worked reasonably well. As for the future, we

must face the fact that we should have to pay more

CONFIDENTIAL

/for oil

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