TNAG-0299-FCO40-335-Entitlement-of-Hong-Kong-to-generalized-tariffs-preferences--1971 — Page 77

(iii) the exclusion of Hong Kong from Japan's

scheme would

(a)

discriminate against her exports for the benefit of her main Asian competitors and would damage her trade;

(D)

be bound to influence the United States Hong Kong's largest market to take a

similar decision;

(iv)

(v)

(c)

appear to be motivated by the desire of some Japanese industries to protect their market in the United States;

(a) be out of line with the decision already

taken by the EEC;

Japan's offer of small quotas on all industrial goods, and only tariff reductions on many, does not compare well with those of the other major donors and we hope that Japan will do something to restore the balance by the widest coverage of developing countries and the inclusi: of all the dependent territories of other donors:

postponement of a decision will do nothing to meet our concern and we consider that solutions to the problems presented by Hong Kong's more competitive goods can be found.

Is Kemmis.

OH Kemmis

CREL

2 June 1971

ཨས, ཝཱཎཾ-སམ;