TNAG-0300-FCO40-336-Entitlement-of-Hong-Kong-to-generalized-tariffs-preferences--1971 — Page 187

IIMMEDIATE

CYPHER/CAT A

FM TOKYO

C206052

RECOVED INDENTIAL

REGISTRY No. 51

- 5 JUL 1971

LJKK 6/

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200

206

CONFIDENTIAL

TO IMMEDIATE FCO TELNO 497 OF 2 JULY INFO ROUTINE HONG KONG, WASHINGTON, UKDEL EEC BRUSSELS AND UKMIS GENEVA.

YOUR TELEGRAM NO 350: GENERALISED PREFERENCES.

1. THE JIJI PRESS ITEM IS MISLEADING. THE MINISTRY OF FOREIGN AFFAIRS CONFIRM THAT THE GOVERNMENT'S POLICY REMAINS AS OUTLINED IN THE COMMUNIQUE OF 11 JUNE. THEY SAY THAT THE CABINET IS DUE TO DISCUSS GENERALISED PREFERENCES ON 9 JULY (NOT 2 JULY AS JIJI PRESS REPORT), BUT ARE UNLIKELY TO DEVOTE MUCH TIME TO THE QUESTION OF SECOND STAGE RECIPIENTS. HOWEVER, THE MINISTRY ACCEPT THE NEED FOR CONSISTENCY OF WORDING WITH THE EARLIER COMMUNIQUE, IF ANY OFFICIAL STATEMENT CONCERNING HONG KONG IS ISSUED AFTER THE MEETING.

2. THE MINISTRY SAY THAT A DECISION ON TIMING FOR SECOND STAGE RECIPIENTS, INCLUDING HONG KONG, IS LIKELY NEXT JANUARY, AND THEY HOPE THAT IT WILL LEAD TO THEIR INCLUSION IN THE SCHEME AS

FROM NEXT APRIL.

3. WE AGREE WITH YOUR PROPOSED REPLY TO MR. BLAKER'S QUESTION. IT WOULD ALSO BE WORTH POINTING OUT THAT THERE HAVE BEEN DISCUSSIONS WITH THE JAPANESE, NOT NEGOTIATIONS. THE JAPANESE ARE METICULOUS IN RULING THAT PREFERENTIAL TARIFFS ARE A GIFT OF THE DONOR COUNTRY AND NOT PROPERLY THE SUBJECT OF NEGOTIATIONS,

FCO PASS ALL ROUTINE.

PILCHER

FILES

FED

HXD

MR WILFORD

FFFFF

[REPEATED AS REQUESTED]

CONFIDENTIAL

COFY TO

MR OH KEMMIS

CREL.,

DTI