TNAG-0299-FCO40-335-Entitlement-of-Hong-Kong-to-generalized-tariffs-preferences--1971 — Page 56

Private Secretary

RECOVED IN REGISTRY No.51

15 JUN 1971

(182)

m Cleston here bondent

En. 1964

ANGLO-JAPANESE TALKS GENERALISED PREFERENCES AND

HONG KONG

At lunch today Mr Hirahara (Director-General of Economic Affairs in the Foreign Affairs Ministry) gave

Mr Royle some important new indications about Japanese

intentions. He said that Hong Kong and other British and foreign dependencies would start to benefit under the Japanese scheme in April next year (as against August this year for most independent developing countries). This markedly contrasts with the information given recently to the Embassy in Tokyo, which was that officials were recommending to the Japanese Cabinet that dependencies including Hong Kong would only be "reviewed" in a second stage process before next April.

Our understanding was that that recommendation would be considered by Japanese Ministers on 20 June.

2.

Mr Hirahara further told Mr Royle that, if the

Japanese could be certain that the United Kingdom scheme would cover other countries' dependencies, they would be able to bring forward the date at which Hong Kong would start to benefit.

3.

Mr Hirahara gave Mr Royle to understand that the Japanese Foreign Minister would make statements to the above effect during his talks with the Secretary of State.

If he does so, I suggest that the Secretary of State should probe on the following points;

(a) Is it really firm that Hong Kong will be a beneficiary, even if it is necessary to wait until April 1972?

(b) Will the Japanese Government make a definite

announcement to this effect in the near future (even if this

must/