Takeo Miki
The second negotiation round in Canberra proceeded from 28 January to 4 February 1975. It was in this round of meetings that the negotiation process hit a major snag due to highly divergent interpretations of the meaning of MFN treatment. The Japanese brought a retrospective interpretation to MFN treatment, which would have entitled Japanese firms to claim benefits afforded to foreign firms in the past by Australian policies that were no longer in operation. Under this interpretation it was expected that at least one Japanese automobile company could establish a wholly owned subsidiary in Australia under the same conditions General Motors was established in 1948, which was unacceptable to Australia. The Australian interpretation was that the MFN commitment would apply prospectively, meaning that Australia was only bound to entitle Japan nationals and companies with the same benefits being accorded at the time of application. The second round adjourned, with hopes being dashed that the treaty would be ready in time for signature when Prime Minister Takeo Miki visited near the end of February.