CYPHER/CAT: A

PRIORITY WASHINGTON

CONFIDENTIAL

Jur COPY Jür

12

на

TO FOREIGN AND COMMONWEALTH OFFICE

WASHINGTON TELNO 96 TO HONG KONG

CONFIDENTIAL. [NEUTRAL]

POM HERMANN.

هد

12 DECEMBER, 1968

YOUR TELEGRAM 120: TEXTILE CONSULTATIONS,

THE DEADLINE FOR REQUESTING CONSULTATIONS ON THE NOTIFICATION

OF 19 NOVEMBER ABOUT CULOTTES HAS BEEN ALLOWED TO PASS BUT STATE

DEPARTMENT THINK IT LIKELY THAT THEY WILL HAVE TO REQUEST CONSULT-

ATIONS ON THE NOTIFICATION OF 7 DECEMBER, IT IS ALSO MORE LIKELY

THAN NOT THAT CONSULTATIONS WILL BE REQUESTED ON GLOVES AND WORK-

SHIRTS, THEY ARE GOING TO TRY TO GET A VERY URGENT DECISION IN THE

HOPE OF HOLDING CONSULTATIONS NEXT WEEK IF THEY ARE REQUIRED, CI AND

SEVERAL KEY AMERICANS WILL BE AWAY FROM 21 DECEMBER TO 1 JANUARY

INCLUSIVE.)

2. IN MEMO 223 POSTED YESTERDAY I EXPLAINED THAT AMERICAN THINKING

SEEMED ROOTED IN TAIWAN SITUATION CIN WHICH A CONSULTATION

CONCERNS ONLY A SPECIFIC REQUEST BY THE EXPORTING COUNTRY TO EXPORT

A STATED QUANTITY, AND U.S, REFUSAL MEANS THE END OF CONSULTATION)

AND THAT THEY DID NOT SHARE OUR UNDERSTANDING THAT CONSULTATION

SHOULD COVER TRADE CONDITIONS FOR WHOLE YEAR AND WOULD NORMALLY

RESULT IN ESTABLISHING A CPROBABLY TEMPORARY) SPECIFIC ANNUAL LIMIT.

THEY SEEM NOW HOWEVER TO BE, COMING ROUND TO OUR WAY OF THINKING, AND

IT 13 LIKELY THAT AT ANY CONSULTATION THEY WILL PROPOSE A TOTAL FOR

1968/9 SHIPIENTS. THEY ARE UNLIKELY TO WANT IT TO COMMIT THEM OR US

FOR FUTURE YEARS,

3.

IN SAGE THE FOREGOING IS CORRECT COULD YOU PROVIDE ME BY

TELEGRAM WITH BARGAINING AND FALLBACK FIGURES FOR OUR 1968/9

REQUIREMENTS ON ALL THREE CATEGORIES INCLUDING A SEPARATE FIGURE FOR

DRESS GLOVES? AMERICANS ARE UNLIKELY TO BE ABLE TO PRODUCE MORE

RELIABLE ESTIMATS OF TOTAL CONSUMPTICH OR DOMESTIC PRODUCTION

DURING YEAR THAN OURS OF TOTAL EXPORT ORDERS, 90 1 AASURE THEY WILL,

ON GENERAL PRINCIPLES, START WITH A LON FIRST OFFER AND PC PREPARED

LAST

REF.

B

13

CONFIDENTIAL

RECEIVED IN ARCHIVES No.31

1 6 DEC 1968

NKICG/304/1

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