The StratCTED.

as the negotiations 4September 22] wi

with Canada are

concerned, there is a need to reach agreement with the

Canadian Government on a basis which would enable trade

to continue at a level acceptable to the Government of Hong

.1

Kong. They are therefore agreed that, if no other arrange-

ment can be made with the Canadian authorities which would

safeguard Hong Kong's position in the Canadian market, it will

be necessary to agree to a continuation of the existing

restraints, including if necessary their extension to cover polyester/polynosic shirts, for a further period at a level

which the Hong Kong authorities are satisfied is the best

which can be obtained in the circumstances.

.7. HMG have also agreed with the Government of Hong Kong to examine whether the procedures for such consultation

as is required between the two Governments in connection

con non-cotton textiles

with negotiations/can be improved.

RESTRICTED

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