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CYPHER/CAT A
PRIORITY HONG KONG
CONFIDENTIAL
TO FOREIGN AND COMMONWEALTH OFFICE
PRIORITY HONG TELEGRAM NO, 27 TO WASHINGTON 24 JULY 1969
·
CONFIDENTIAL
[NEUTRAL]
ADDRESSED WASHINGTON (FOR HERMANN) TEL. NO. 27 OF 24TH JULY
REIFCO AND UKMIS GENEVA.
U.S. TEXTILE POLICY.
WE HAVE HAD SEPARATE INDICATIONS FROM KOREAN AND JAPANESE SOURCES
BOTH IN HONG KONG AND GENEVA THAT THE SORT OF IDEAS SET OUT IN
VPARAGRAPH 5 OF RIDLEY'S LETTER OF 11 JULY TO CAREY ARE BEING BATTED
AROUND IN WASHINGTON. OUR INFORMANTS TELL US THAT THE STATE
DEPARTMENT AND GILBERT OFFICE HAVE NOW TAKEN UP THE IDEA OF AN APPROACH TO CERTAIN SOUTH EAST ASIAN COUNTRIES TO REQUESTS RESTRAINTS
SELECTIVELY ON AN ITEM BY ITEN, FIBRE BY FIBRE BASIS ON THE GROUNDS THAT AN ARTICLE XIX TYPE SITUATION EXISTED FOR THESE ITEMS IN THE U.S. SOME OF THE SOURCES SAY THAT THIS LINE HAS BEEN ACCEPTED
BY THE ADMINISTRATION AS A WHOLE AND APPROVED BY THE PRESIDENT
AND THEY BELIEVE THAT THE FIRST APPROACH MAY BE MADE DURING THE U.S./ JAPAN MINISTERIAL TALKS AT THE END OF THIS MONTH,
2.
SINCE RECEIVING THE ABOVE INFORMATION WE ALSO HAVE BEEN TOLD BY FRANCIS TIEN (WHOSE CONTACTS IN THE U.S. ARE USUALLY VERY GOOD)
THAT A FRIEND OF HIS WHO WAS FORMALLY IN THE COMMERCE DEPARTMENT
HAD HEARD THAT COMMERCE INTENDED TO SEND A MISSION TO JAPAN, KOREA, TAIWAN AND HONG KONG TO FOLLOW UP THE EARLIER STANS' TALKS. IF TRUE THIS MAY OR MAY NOT LINK UUP WITH THE SELECTIVE
APPROACH. STANS' REPORT TO THE PRESIDENT CLEARLY STILL RULED OUT THIS OPTION BUT IT MAY BE THAT STANS HAS BEEN OVERRULED CH THIS, AND THAT THE PRESIDENT HAS ORDAINED THAT ANOTHER ATTEMPT SHOULD BE MADE TO FIX UP SOME SORT OF A DEAL WITH THE MAJOR ASIAN
EXPORTERS.
RECEIVED IN
REGISTRY No.51
28 JUL 1969
HKK60/204/1
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