TNAG-0299-FCO40-335-Entitlement-of-Hong-Kong-to-generalized-tariffs-preferences--1971 — Page 38

FIRO TU DE WRITTEN IN THIS MARGIN

CONFIDENTIAL

Mr Aichi said that a number of Asian leaders

had expressed to him anxiety lest the reopening of

the Suez Canal might lead to the further growth of

Soviet naval activities in Asia. Sir Alec Douglas-lic

thought that this danger was real but that we should

nevertheless promote the reopening of the Canal if

this seemed likely to contribute to a settlement

between the Arabs, and Israel. Mr Rogers seemed to

Mr

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attach great hope to an interim settlement.

hope was that an interim

Evans suggested that the

settlement might lead to

changed attitudes which

would open the door to a longer term settlement.

It was too early to judge whether the Americans might succeed. There was of course a danger that an

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interim settlement might create a situation on the ground where there would no longer be any dynamic

for anyone to take further action. This risk

must be accepted. Sir Alec Douglas-Home drew some

encouragement from the fact that there had been no

shooting for some time.

ANGLO-JAPANESE RELATIONS

Economic Relations

? gratification/pleasu pleasure

Mr Aichi expressed gratitude at the increase, in

Anglo-Japanese trade to $875 million in 1970, approximately 29% greater than in the previous year. The Japanese Government intended to pursue its policy of liberalisation designed to contribute to

freer trade. They would have eliminated two thirds

of the items subject to global import restrictions within the two year period beginning Autumn 1969.

CONFIDENTIAL