TNAG-0299-FCO40-335-Entitlement-of-Hong-Kong-to-generalized-tariffs-preferences--1971 — Page 55

Mr Wilford

CONFIDENTIAL

183

ker Lashort.

и светот

En 456.

GENERALISED PREFERENCES AND HONG KONG

As you know, Mr Aichi made the sort of statement at this morning's Ministerial talks which Mr Hirahara had forecast yesterday to Mr Royle, namely that the Japanese Government had decided to include Hong Kong as a beneficiary under their scheme (subject to certain specific restrictions), although this could not be done by 1 August the date when they intended to implement their scheme as a whole. Hong Kong would be "in the second train".

2.

G

I stressed to Mr Hirahara later that it would obviously be of great importance to Hong Kong and to us to know whether the Japanese restrictions on the scheme as applied to Hong Kong would be minor or major. If they were of some significance as to make the benefits enjoyed by Hong Kong derisory little would have been gained by the theoretical inclusion of Hong Kong in the scheme. Mr Hirahara accepted this as a statement of the obvious as indeed it was intended to be.

3.

and

As you also know, the Secretary of State answered the Japanese questions at the morning's meeting about our treatment of other countries' dependencies by saying simply that it was ourintention to include them. I told Mr Hirahara later that if Mr Aichi had not made his statement about Hong Kong, I thought the Secretary of State would have hedged his replying by saying that our intention might have to be reconsidered if our dependencies were excluded by a significant number of countries and in particular if Japan excluded Hong Kong I warned him that too many restrictions on the scheme's application to Hong Kong might well cause us to reconsider our intention anyway. I added that we might have to consider our attitude towards Guam if the United States excluded our dependencies; but our understanding was now that Japan as well as the EEC was including Hong Kong the Americans would reconsider their previous refusal to do so. Mr Hirahara accepted all this as perfectly fair and reasonable.

4.

Mr Hirahara asked me when we expected to implement our scheme. I said that no firm decision had yet been taken, but that unless something very surprising happened it would be implemented at the latest by the end of this year.

11 June 1971

Copy to Sir L Monsan

Mr Morgan

Mr Laird

Mr Burns Mr Lam (DTI)

RECEIVED IN CEGISTRY No.51 16 JUN 1971

J.R.G.

Portoman

JRA Bottomley