5.
Cronk sounded a bit depressed about the outlook. Stern, more openly, said that Congressional soundings
had shown a willingness to do something but not necessarily the scheme that the U.S. has put to UNCTAD. Stern added that the Peterson review group was much influenced by fears of Congressional criticism and amendment. This meant that the chances both of getting into the Administration Bill even a restricted eligibility for Hong Kong, and of getting any flexibility at all on the "reverse preferences" condition of eligibility generally, were receding. Both these aspects of the scheme had already attracted the attention of hard-liners on Capitol Hill among Congressmen and Committee Staffs.
6.
Neither Cronk nor Stern were aware of any representations by or discussion with British officials on these matters in London or Paris or elsewhere since my last talks with them. Stem indicated that political and strategic arguments seemed more likely to be influential than economic/trade policy ones and he made it clear that unless Dr. Kissinger could be prevailed upon to intervene on these grounds, he saw little prospect that the Administration Bill would reflect British wishes on the remaining crucial issues.
7.
Neither
I have of course made sure that Stern and Cronk are both aware that the Japanese have in mind to include Hong Kong, if not initially then at a later date. seemed to regard Hong Kong's eventual inclusion in the Japanese scheme (even now that it can be authoritatively authenticated - FCO telegram No. 439) as necessarily likely to carry the day either in the White House or Congress However, if Japan had decided against inclusion, this would of course hve been a major consideration against Hong Kong's inclusion in the American scheme.
Yours ever,
Вси
cc's: 0.H. Kemmis, Esq., D.T.I. Miss M. J. Lackey, D.T.I.
B. W. Meynell
W. Nicoll, Esq., D.T.I. J. F. Slater, Esq., Treasury P.G.A. Wakefield, Esq., Tokyo North America Dept., F.C.O.
European Integration Dept., FCO Caribbean Dept., F.C.O. Hong Kong
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