HKK 6/304/1
CONFIDENTIAL
28
Hong Kong Department
n. Stewart-
21 February, 1969
I am sorry to add to your papers at this late stage, but although we had the enclosed copy of a brief by the Board of Trade on US/UK trade policies to cover discussions during President Nixon's visit before you left, we had not had the time to study it ourselves.
2.
This is a subject on which you are very likely to be questioned if and when you meet anyone from the Department of Commerce and Industry. They are well aware in Hong Kong of the strong pressure in the USA for extending the Long Term Agreement on Cotton Textiles to cover wool and man-made fibres and in view of the importance of their trade with America are very anxious to know if it will be resisted or not.
3. Before the Presidential election, Nixon - and for the matter of that Humphrey made noises at their textile industry to indicate that they would protect them by con- trolling imports. Since the election President Nixon, we are glad to say, has somewhat changed his tune and in a recent statement actually said that he "took a din view of moves towards quotas". However, he went on to speak of "volunteer quotas" and the US proposes to initiate exploratory discussions to induce the major countries involved to accept voluntary restraints.
4.
You will see from the brief that during President Nixon's visit a fairly robust line is to be taken on this subject. There is no reason why Hong Kong officials should not be given the gist of this, emphasising our position on restraint of textile imports; but since this is a Board of Trade paper (and we have not had time to get their permission) it would be improper to hand over a copy of the enclosure.
(W. 8. Carter)
J. O. Moreton, Esq., C.M.G., N.C.,
c/o Government House,
HONG .04.
CONFIDENTIAL