§ 6. Mr. Blakerasked the Secretary of State for Foreign and Commonwealth Affairs whether he is now able to state the results of his discussions with the Japanese Government about the exceptions made by the latter to its scheme of generalised preferences in relation to Hong Kong.
§ The Under-Secretary of State for Foreign and Commonwealth Affairs (Mr. Anthony Royle)I have seen the 979 Japanese Ambassador and handed over to the Japanese Government an aide-memoire expressing our disappointment at the treatment of Hong Kong in the Japanese Generalised Preference Scheme and asking the Japanese Government to reconsider the position. Our concern was reinforced by my right hon. Friend the Secretary of State for Trade and Industry when he met Japanese Ministers at the beginning of this month. The Japanese Government have undertaken to examine our request.
§ Mr. BlakerI welcome my hon. Friend's reply, but is not the attitude of the Japanese Government towards Hong Kong rather puzzling, as Hong Kong buys more from Japan than any other country and as the Japanese benefit from the Hong Kong Government's policy of an open door for foreign investment and for public tendering? Can my hon. Friend explain why the Japanese Government appear to be discriminating against Hong Kong in favour of its close competitors?
§ Mr. RoyleWe are concerned about the matter. Hong Kong very much wishes to avoid discrimination which might operate in favour of its competitors. Of the 96 items on the exceptions list, 37 are not exported from Hong Kong to Japan, eight are not made in Hong Kong at all and Hong Kong calculates that of the remaining 59 only 13 are of any real significance to it, representing more than half of Hong Kong's exports to Japan. Of the exceptions, there are certain products of which Hong Kong's competitors, which are not subject to any exceptions list, are the main exporters.