MP.tomley said that it would be a pity for
Japan to hold off the completion of the Anglo-
Japanese trade negotiations since this could bring
useful advantages even if only for a period.
Mr. Arita affirmed the sincerity of Japan's
intention to consider the possibility of
the
extending/liberalisation exercise, to include whisky.
Japan would continue to take practical steps despite
certain difficulties. The Japanese wanted to move
ahead but were not quite sure how to do this.
Mr. Sanders confirmed our appreciation of Japan's
actions but made it clear that we could not conclude
an agreement unless it included a reduction in the
tariff on whisky and in the alternative specific
duty on wool. Mr. Arita pointed out that between
January and March whisky imports to Japan had increased
three-fold but prices had not fallen.
Hong Kong and the Generalised Preferences Scheme
Mr. Bottomley expressed concern that certain
statements made in Japan's Diet had not been maintained.
He hoped that those sections of the Japanese Government
who were uneasy about Hong Kong in this context
would discuss their anxieties with the officials from
Hong Kong due to visit Japan next week. British
Ministers were concerned about this matter.`
Aviation
Mr Arita referred to the negotiations due to be
held in September and said that Japan would like to
gain increased services. Mr. Wilford hoped that we
should achieve a suitable balance of both our interests.
Mr. Arita added: "at a higher level".
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