CYPHER/CAT A

ROUTINE WASHINGTON

TELEGRAM NO 14

CONFIDENTIAL. [NEUTRAL]

CONFIDENTIAL

TO HONG KONG

18 MARCH, 1969

43

TOP COPY

RECEIVER

ADDRESSED TO HONG KONG TELEGRAM NO 14 OF 18 MARCH REPEATED

FOR INFORMATION TO HONG KONG OFFICE LONDON.

FROM HERMANN.

TEXTILE CONSULTATIONS.

# 19 MAR

HKK 6

/304/1

AT A MEETING YESTERDAY AMERICANS AGREED TO TREAT TOWELS AS

A SEPARATE QUESTION.

2. THEY REPEATED THEIR BID OF 400,000 DOZEN PAIRS OF GLOVES FOR THE CURRENT YEAR, SAID THERE WAS NO POSSIBILITY OF IMPROVING ON IT, AND INDICATED THAT THEY WOULD IMPOSE THAT FIGURE IF WE CANNOT AGREE. THIS OF COURSE INCLUDES THE 17962

SHIPPED BEFORE THE YEAR BEGAN AND ALSO THE 5863 DRESS GLOVES

SHIPPED BY SPECIAL ARRANGEMENT, SO IT REPRESENTS IN EFFECT

AN EXTRA 51137 DOZEN PAIRS.

3. THEY SIMILARLY REPEATED THEIR BID OF 25,000 WORKSHIRTS. 4. I SAID I WOULD SUBMIT BOTH FIGURES TO YOU AGAIN (NOW THAT THEY ARE CLEAR OF ANY QUID PRO QUO ELEMENT) BUT FELT CERTAIN YOU WOULD FIND THEM UNACCEPTABLE. I AM SURE THERE IS NO HOPE OF ANY IMPROVEMENT HERE, SO I SUGGEST FOLLOWING PROCEDURE: (A) I TELL AMERICANS INFORMALLY THAT WE CANNOT AGREE, (B) THEY WRITE INFORMING ME THAT, AS CONSULTATIONS HAVE FAILED TO PRODUCE AGREEMENT ON AN APPROPRIATE COURSE OF ACTION, THEY REQUEST US TO LIMIT EXPORTS TO A ABOVE FIGURES.

(C)

REPLY THAT WE SHALL DO SO.

5. CULOTTES. WE AGREED ON TOTAL FOR CURRENT YEAR OF APPROXIMATELY 468,000 LBS., 1.E. TOTAL ORDERS AT LAST NOTIFICATION LESS QUOTE CHILDREN'S CULOTTES UNQUOTE STILL AWAITING AUTHORIZATION. IF .

YOU CONCUR I SUGGEST I WRITE THEM STATING SIMPLY THAT AS AGREED DURING CONSULTATIONS HONG KONG WILL LIMIT EXPORTS OF CULOTTES DURING CURRENT AGREEMENT YEAR TO 468,163 LBS. PLEASE CONFIRM

FIGURE.

F C O PASS HONG KONG AND HONG KONG OFFICE LONDON.

MR. FREEMAN

[REPEATED TO HONG KONG]

INTERNATIONAL TRADE DISTRIBUTION

HONG KONG DEPT

TRADE POLICY DEPT

COMMODITIES DEPT

N.A.C.D.

CONFIDENTIAL

5

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