3.

RESTRICTED

16.

While Mr. stans in Hong Kong spoke with conviction about the economic case for restraint, neither Mr. Hodgson nor Mr. Jurich did so. They spoke thus only of the political problem. Mr. Jurich emphasised Mr. Nixon's political commitment to the textile industry, but said it was only a commitment to help the industry: Mr. Nixon hadn't decided yet how to help them.

DHJ/CS

(Sgd.) D.H. Jordan

Director of Commerce and Industry

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