CONFIDENTIAL
-2-
A
HEAVILY DEPENDENT ON THE U.S. MARKET - BUT IF HELD TO PROPOSED LIMIT.
FOR REASONS CAUSED BY ALLEGED BUT UNSPECIFIED DAMAGE TO U.S.
INDU INDUSTRY, LARGELY ATTRIBUTABLE TO IMPORTS OF WORK GLOVES FROM
ELSEWHERE, WE MAY LOSE THIS SECTOR. PLEASE REHEARSE THE FASHION,
SHORT-TERM-ORDER NATURE OF THIS TRADE.
DAMAGE TO WORK GLOVES SECTOR CAUSED BY FRUSTRATION OF ORDERS FOR
ABOUT 300,000 DOZEN IS ALSO LIABLE TO BE SERIOUS. AND INDUSTRY IS
BOUND TO BE AWARE OF ORIGINAL TAIWAN PROBLEM AND APPARENTLY FAVOUR-
ABLE RECENT REVIEW OF THE TREATMENT OF THIS TRADE REPORTED IN
YOUR MEMORANDUM 35.
THEN GO ON TO SAY THAT IF THE LIMIT OF 430,000 DOZEN CANNOT BE
SUBSTANTIALLY INCREASED WE INTEND TO SEND FOR U.S. CONSUL GENERAL
TO EXPRESS OUR ALARM AT THE DAMAGE WHICH COULD RESULT FROM THIS
HARSH DECISION AND THE CONSEQUENTIAL LOCAL REACTION. IT MUST NOT BE
OVERLOOKED THAT SIX MONTHS OF THE QUOTA YEAR REMAINS TO RUN, A LONG
TIME TO SHUT DOWN A SELF-CONTAINED SECTOR OF TRADE SEMICOLON AND
IN 1969 THE U.S. TOOK 27% (385,000 DOZEN) OF THE SALES OF OUR
WOVEN COTTON GLOVE INDUSTRY.
2. 1 APPRECIATE YOU FEEL THERE IS NO HOPE OF IMPROVEMENT, BUT IT
SEEMS NECESSARY TO MAKE LIFE AS DIFFICULT AS POSSIBLE FOR AMERICANS
TO DISCOURAGE FUTURE REQUESTS BASED, AS DESCRIBED IN YOUR MEMORANDUM
45, NOT ON THE ACTUAL AND IDENTIFIABLE THREAT OF DAMAGE TO THE U.S.
INDUSTRY BUT ON THE VOLUME OF PROTEST IT MAKES.
3. WE PROPOSE TO PREPARE A MEMORANDUM ON GENERAL PRINCIPLES FOR
THE FUTURE.
FCO PLEASE PASS ROUTINE TO WASHINGTON AND HONG KONG GOVERNMENT OFFICE
SIR D. TRENCH
REPEATED TO WASHINGTON
COPIES PASSED TO HONG KONG GOVERNMENT OFFICE VIA A.D.R./
INTERNATIONAL TRADE DISTRIBUTION
HONG KONG DEPT.
COMODITIES DEPT.
TRADE POLICY DEPT.
X.A.C.D.
YYYX
CONFIDENTIAL