TNAG-0299-FCO40-335-Entitlement-of-Hong-Kong-to-generalized-tariffs-preferences--1971 — Page 21

nese companies' share. He did not

know how this could be achieved but the attempt must

be made.

(2) It was necessary for Japan to increase

her st ks of oil; at present these amounted to only 45 days'

supply including oil in transit. He thought this

should be raised to '60 or possibly 90 days'.

Mr Hirahara wondered whether there should be an

association of importing countries to match OPEC.

It might be useful to have international meetings.

He would however prefer consultation in bodies such as

a

OECD or among/limited range of countries.

///

Mr Beckett

suggested that international meetings in certain

}

countries carried a danger of involvement in politics

and therefore were undesirable. As to stocks, we

worked to 75 days but considered this inadequate.

Most of this was held by the companies but some by the

Government. He would like to know why the Japanese

wanted to increase the proportion of oil supplied

security?/M

through Japanese companies. Would this give increased

Mr Hirahara said that Japan was grateful fþr

the help given by the UK and the US but pointed out that

negotiations carried out mainly by the big companies

did not necessarily reflect the Japanese point of view.

There was also the price point. Mr. Beckett asked

whether it was intended that Japanese enterprises should

enter into partnership with those of other countries or

that they should start from scratch. Mr Hirahara

thought that both methods were desirable. Mr. Beckett

suggested that partnership might be found fruitful.

While increases in cost must be passed on to the

customer, in the UK the competition between the

suppliers was the consumers' safeguard.

CONFIDENTIAL

/Mr Bottomley

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