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6. I WONDER THEREFORE WHETHER THE AMERICANS ARE IN FACT TRYING TO
PREPARE THE GROUND FOR A LATER APPROACH TO THE DEVELOPED COUNTRIES
TO SUPPORT A MULTILATERAL MULTI-FIBRE AGREEMENT ON THE GROUNDS THAT =
(A) THE LOW-COST SUPPLIERS INTRANSIGENTLY OPPOSE 'VOLUNTARY '
RESTRAINT.
(B) THE ONLY OTHER CHOICE IS IMPORT QUOTA LEGISLATION IN THE U.S.,
WHICH WOULD HURT DEVELOPED AS WELL AS DEVELOPING.
WHILE WE HAVE NO ENTHUSIASM FOR THE 'CTA EXTENSION' IT COULD BE
PREFERABLE TO A WIDE EXTENSION OF 'VOLUNTARY' RESTRAINT AND IS
CERTAINLY PREFERABLE TO IMPORT QUOTAS.
7. PENDING YOUR REPLY WE SHALL CONTINUE HERE TO TAKE THE LINE
INDICATED IN PARA. 4 OF WASHINGTON TELEGRAM 360 AND TO DECLINE
DETAILED COMMENT IN THE ABSENCE OF DETAILED AMERICAN PROPOSALS.
8. FCO PLEASE PASS TO HONG KONG GOVERNMENT LONDON OFFICE.
WASHINGTON
LENEVA.
FCO PLEASE PASS ROUTINE TO WASHINGTON AND UKMIS KENEVA.
{
SIR D. TRENCH
[REPEATED AS REQUESTED/
/COPIES SENT TO LONDON OFFICE OF HONG KONG GOVERNMENT
BY COMMUNICATIONS DEPARTMENT, A.D.R./
INTERNATIONAL TRADE DISTRIBUTION
COMMODITIES DEPT.
HONG KONG DEPT.
F.E. DEPT.
N.A. & C.D.
NNNNN
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