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Government was being given advice and not directions by
H.M.G.
4. In 1967 the question of exports of polyester/cotton garments to Canada arose. This was the first time that a cotton substitute had been considered. Hong Kong had resisted the argument that Article VI of the CTA was applicable. Consultations were held in Canada but were adjourned for a month whilst the question of a submission to Ministers was
considered. At that time there was a difference of opinion within the Board of Trade but, after discussion at official level, it was agreed that the voluntary restraint agreement should be concluded. In July 1968 the question of the renewal of this agreement arose. Hong Kong had said that they were ready for consultations but there was no reaction from London. He went to Ottawa, but found that the High Commissi on had no instructions After his talks he sent a telegram to Hong Kong on 25 July reporting the Canadian proposals for a package dcal. There was no comment from London.
5.
Earlier in 1968 they had had discussions with the Norwegia and the Swedes. The Swedes had said that H.H.G. would refuse to agree to Hong Kong applying voluntary restraint, but the Board of Trade had written to the Swedish Embassy saying that they did not rule out voluntary restraint when a case existed. As regards Norway Hong Kong had sent a telegram about negotiations and London had eventually agreed to their fall back position.
6. After these various exchanges, the Hong Kong authorities thought that the policy was fairly well established. In January 1969 ir. Jordan had gone to Stockholm to talk to the Swedes and reported with an analysis of the situation, but he had had to go later to Geneva without any agreed instruc- tions. He had reported on 14 May. London had said they were examining the statistics and on 10 June London had refused
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