CONFINE
in that senge for expansion be not denied to the They are also ambitious to make some inroads into European markets where their pe Formanes so far has been mogligible in textiles or any other commodity.
I reassured than of ur continued interest in free trade
extension of textile restraints beyond cetten. apabe generally in the terms of paragraph 4 of Ambassador Vashingtun's talegram No. 368 to the Secretary of State; advocated that the
be followed by all Asian suppliers in the present circumstances une to sit tight until the U.6, made some positive proposals. They readily agreed.
7.
talk their part in overseas markets,
st for
Nang Long.
8.
the textile issue, there was some rather imprecise the desirability of avoiding damaging competition
They made it clear informally, however, that this they were well aware of the circumstances of
1 remain of the opixion that the Koreans are potentially useful allies in various international forums, notably the 2.4.T.T., he U.H.C.T.A.D. B.C«A«P.B. Thay re tough and aggressive but not very experienond in mercial relatin (They have only very recently been admitted to G.A.T.T. manbaraháp. ) For what are largely historical and esotional reascus, they are unwilling to be led by the Japanese; but they obviously adaire and envy the commercial and industrial progress that we have been able to make. I foresee that occasions may arise where influenos exerted Leream representatives could result in their advocacy of courses of actiam vkich ve vould favour but which it might be awkward for us to pro- mete directly. Although in saying this, of course, I am well aware that their value as an ally is somevimit diminished by their political situation. även here, however, they can provide a useful bridge to emable us to learn of Taiwan thinking; in this connection please see the enclosed memoramchy Mo. 12 of 31 January 19əƉ5 from sy Assistant Director in Vashington.
At the close of our discussions, the Toreans expressed the vish to have an agreed sumary record. On the understanding that it would be a reasonably bland document, I agreed and they proceeded to draft, Courtesy dictated that we not make too many amendments to their draft and the final document, a copy of which is enclosed, reads somewhat quaiatly as a result. The reference in the last sentence of paragraph 7 to "a certain country” is, I was informed by the dritish imbassy, the standard korean euphemÅ S for Japan.
10.
The prog-
They
the whole, I consider the visit was worthwhile although there vas less opportunity for hard-core discussion than I would have vished. I was impressed by the apparent quality and integrity of the officials whom i met; and their unofficial colleagues in the trade and industry associations seemed also to be both; pragmatic and enthusiastic. nosis for continued economic expansion in Lorea seems fair, alteonazis gather there is mounting doubt in Luropean circles (including 8.8.8.) to the centimuing ability of Korea to cope with debt servicing. have chosen as their broad economic plan to invest their scarce and expensive capital substantially in reavy, capital intensive industries with a view to self-sufficiency in such fundamentals as irom and steel, petroleum predicts furtilizers. The objective is, of course, the saving of foreign exchange by import substitution; but cammot help but wonder if the gamble of playing for a reduced outflow of foreign exchange in the medium term by this mans is more or less likely to pay off tham a policy vhich might have diverted a bigger stare of resources to rather more labour intensive, suport orientated industries.
11./