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STANS MIGHT REPRESENT THIS AS A QUALIFIED READINESS TO ACCEPT THE EXTENSION OF THE L.T.A.
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YOU SHOULD ALSO BEAR IN MIND THE LEGISLATIVE POSITION IN THE U.S. AS EXPLAINED IN LONDON BY MR.NEHMER 1.E. THE FACT THAT THEIR PRESENT LEGISLATION GIVES THE U.S. ADMINISTRATION AUTHORITY TO IMPOSE QUOTAS ONLY WHERE THERE IS A PRE-EXISTING BILATERAL ARRANGEMENT OR MULTILATERAL ARRANGEMENT, AND THAT, AT LEAST IN MR. NEHMER'S VIEW, IT IS NO USE FOR THE U.S. TO ENTER INTO GENTLEMEN'S AGREEMENTS WITH OTHER COUNTRIES, UNLESS THE U.S. HAS IN THE BACKGROUND THE POWER TO IMPOSE QUOTAS. THIS SUGGESTS THAT EVEN MORE CARE SHOULD BE TAKEN TO AVOID GIVING TO THE U.S. ANYTHING WHICH THEY CAN PRESENT AS A BILATERAL OR MULTILATERAL ARRANGEMENT, AND THAT ANY SUGGESTIONS POINTING TOWARDS A GENTLEMAN'S AGREEMENT WHICH STANS MAY MAKE WILL PROBABLY BE ADVANCED ONLY FOR TACTICAL REASONS.
5. IT IS LIKELY THAT THE AMERICANS WILL ARGUE THAT THE VOLUNTARY RESTRAINT ARRANGEMENTS WITH NORWAY, SWEDEN, WEST GERMANY AND CANADA HAVE CONCEDED, AS FAR AS HONG KONG IS CONCERNED, THE PRINCIPLE OF RESTRAINT ON NON-COTTON TEXTILES. SO FAR AS WE CAN JUDGE, THE ONLY POSSIBLE LINE OF REPLY FOR YOU IS THAT THESE WERE ALL VERY SPECIAL CASES AND IF THE UNITED STATES CAN SHOW IN RESPECT OF PARTICULAR TEXTILE PRODUCTS THAT THEY HAVE SIMILAR CASES, BOTH THE HONG KONG AND BRITISH GOVERNMENTS WOULD BE PREPARED TO CONSIDER THEM WITHOUT COMMITMENT.
6.
WE PROPOSE TO SEND WHITEHEAD (HEAD OF COMMODITIES DEPT. IN F.C.0.) TO JOIN YOUR CONVERSATIONS WITH MR. STANS.
STEWART
INTERNATIONAL TRADE DISTRIBUTION
COMMODITIES DEPT.
H.K.D.
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