CONFIDENTIAL
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SPOKEN TO MARTIN) OUT OF FOUR COUNTRIES HAVE RESPONDED TO THE QUOTE COMPREHENSIVE BILATERAL UNQUOTE APPROACH AND STANS DOES NOT APPEAR YET TO HAVE GIVEN UP HOPE OF SUCCESS WITH THE JAPANESE, (SEE PARA. 4 BELOW) IT WOULD BE VERY DIFFICULT TO MAKE ANY PROGRESS WITH THE STRATEGY OF GUIDING STANS TOWARDS THE SELECTIVE APPROACH
WHICH HE HAS SO FAR CATEGORICALLY REJECTED.
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JAPANESE CONSUL HAS JUST INFORMED US THAT U.S. GOVERNMENT MADE FORMAL REQUEST ON 2 OCTOBER THROUGH WASHINGTON EMBASSY FOR NEGOTIATIONS ON A COMPREHENSIVE BILATERAL COVERING MMF AND
WOOL. EMBASSY HAD RECEIVED REQUEST WITHOUT COMMITMENT. CONSUL DID NOT KNOW WHETHER REQUEST HAD BEEN MADE IN WRITING, NOR WHAT
RESPONSE WOULD BE MADE.
5. HE ALSO TOLD US TO DISCOUNT REPORTS THAT JAPAN WOULD TRADE TEXTILE RESTRICTIONS FOR OKINAWA: JAPANESE GOVERNMENT HAD NOT
YET DECIDED ITS POLICY ON OKINAWA.
FCO PLEASE PASS ROUTINE WASHINGTON, UKMIS GENEVA AND HONG KONG GOVERNMENT LONDON OFFICE.
SIR D. TRENCH
REPEATED AS REQUESTED TO WASHINGTON
AND UKMIS GENEVA/
INTERNATIONALTRADE DISTRIBUTION
H.K.D.
CONFIDENTIAL
ADVANCE COPIES SENT
COPY TO:
HONG KONG GOVERNMENT OFFICE,
54 PALL MALL