CYPHER/CAT A
PRIORITY HONG KONG
TELEGRAM NUMBER 407
CONFIDENTIAL
[NEUTRAL]
CONFIDENTIAL
156
R&R
American File
TO FOREIGN AND COMMONWEALTH OFFICE
19 MAY 1969
ADDRESSED F C O TELNO 497 OF 19 MAY R F I
WASHINGTON, UKMIS GENEVA, UKDEL EEC BRUSSELS AND SAVING
TO PARIS BONN ROME BERNE BRUSSELS THE HAGUE TOKYO AND SEOUL.
STANS VISIT.
AFTER COURTESY CALL ON ME, STANS AND PARTY MET HONG KONG TEAM HEADED BY FINANCIAL SECRETARY AND DIRECTOR OF COMMERCE AND INDUSTRY.
HIS PRESENTATION OF THE U.S. CASE WAS COMPARATIVELY BRIEF, BEING VIRTUALLY CONFINED TO THE THREAT OF CONGRESSIONAL ACTION AND SPREAD OF PROTECTIONISM IN THE U.S. IF TEXTILE
IMPORTS WERE NOT BROUGHT UNDER CONTROL. THE ECONOMIC AND COMMERCIAL ARGUMENT WAS PERFUNCTORY AND UNCONVINCING, BEING LARGELY BASED ON TREND OF IMPORTS' EXPRESSED IN PERCENTAGE TERMS, WITHOUT REFERENCE TO PRODUCTION, SALES OR MARKET SHARE HELD BY IMPORTED GOODS, 1.E. PRESENTING NO EVIDENCE OF DAMAGE, EXCEPT IN RELATION TO EMPLOYMENT IN MILL TOWNS AND THE STOCK MARKETS' ATTITUDE TO TEXTILE SHARES. THREATS WERE REINFORCED BY PRESENTATION OF COPIES OF MILLS BILL, TELEGRAM FROM MILLS, REFERENCE TO THE HOLLINGS AMENDMENT, FAIR LABOUR ACT AMENDMENTS, POSSIBILITY OF CHRISTMAS TREE TYPE AMENDMENTS TO PROTECTIONIST LEGISLATION, ETC. THIS APPROACH WAS DICTATED, AS HE VIRTUALLY ADMITTED, BY ABSENCE OF ANY QUID PRO QUO TO OFFER OR RESTRICTIVE PRACTICE ON OUR PART TO COMPLAIN ABOUT SEMICOLON AND, OF COURSE, HAD NO FEAR OF RETALIATION. HE ASSURED US THAT HE WAS NOT SEEKING CUTBACK OR STANDSTILL BUT ONLY MODERATION OF THE RATE OF GROWTH'. PREFERENCES WERE NOT MENTIONED.
2.
WE BEGAN BY ASKING FOR CLARIFICATION OF AND QUERYING CERTAIN
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RECEIVED IN
REGISTRY No.51
20 MAY 1969.
INKKS BOY /