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would have to be held between Japan siri the U K. Uzu himself was going to Vienna from 2 - 7 June; and then on to London, where he would meet Fell. But to wait until then ves leering matters rather late, and earlier action was preferable. He had two questions to put to us. First would it be better to approach the Hong Kong Government before the second consultation, or immediately afterwards? Secondly, who should approach the Hong Kong Government? The Ambassador replied that we could not answer these questions ourselves, but undertook to put them, urgently, to London.
6.
.. In subsequent conversation, Ozu said that Fell told him that he had floated the idea of Anglo-Japanese cooperation with "one or two" people from the British consortium, end had understood that the British side were in principle interested. He thought it was preferable that the first approach to the Government of Hong Kong should be at Government rather than consortium level, and he would profer & N G to take the first step. The Aubassador commented that the Japanese Government were at something of a Landicap, in view or other mettere obfading" (he was referring to the Japanese exceptions list for generalised preferences for Hong Kong). Ozu added that, of senior people within HITI, only Masuda (apart from himself) knew about the possibility of an Anglo- Japanese bid. He had not mentioned it to either Morozwi or Mr Nakasone. (As you probably know, Maguda is Director General of the Trade Tevelopment Bureau, and florozumi is the Administrative Vice Minister, i e 2 US). He right eventually have to speak about it to Mr Tanaka.
7. When Fell was in Tokyo in March, he mentioned to Popplewell that he had put our Parliementery Under Secretary, Fir Royle in the picture, and also útuart, the Head of our Hong Kong and Indian Ocean. Departnent. This Katter will also be of great interest to our Far Jaster Iepartment. I am therefore sending a copy of it to the Head of F E D, Richerd Evans, on a perecnal basis.
R Burges Watson
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