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BUT WOULD NOT BE A NEGOTIATING BRIEF. MR. NIXON AND MR. SATO MIGHT
WELL MERELY EMPHASISE THEIR RESPECTIVE POLITICAL PROBLEMS AND AGRE
ON THE NEED TO FIND ACCEPTABLE SOLUTIONS.
4. ASKED WHAT THE U.S. NOW EXPECTED TO ACHIEVE IN SUBSTANTIVE TALKS
WITH JAPAN KATZ IMPLIED THAT COMPREHENSIVE BILATERAL RESTRAINTS
REMAINED THE OBJECTIVE. HE MADE IT QUITE CLEAR THAT THE U.S. WAS NOT
REPEAT NOT INTERESTED IN FACT-FINDING STUDIES, WHETHER IN G.A.T.T. OR BILATERALLY. HE WENT ON TO EXPRESS THE HOPE THAT, ALTHOUGH.
SUPPLIER COUNTRIES WERE NOT PERSUADED THAT THE U.S. HAD A GENERAL
TEXTILE PROBLEM IN ECONOMIC TERMS, THEY RECOGNISED THAT SOME KIND
OF PROBLEM EXISTED. ASKED WHETHER THIS MEANT THAT THE U.S. WAS
COMING ROUND TO COMTEMPLATING LIMITED SOLUTIONS FOR LIMITED PROBLEMS,
AND IF SO WHETHER SUCH A SHIFT IN THINKING INCLUDED THE
DEPARTMENT OF COMMERCE, KATZ BECAME VERY VAGUE. HE DID SAY, HOWEVER,
THAT THERE WAS SOME DISPOSITION TO QUOTE LOOK AT SOLUTIONS TO MEET
THE PROBLEMS UNQUOTE AND TO RE-EXAMINE ENTRENCHED ATTITUDES.
5. WE MUST NOT READ TOO MUCH INTO ALL THIS. CLEARLY THE AMERICANS
ARE FAIRLY CONFUSED THEMSELVES. BUT IT DOES LOCK RATHER AS IF
THEY ARE NOT EXPECTING VERY MUCH FROM MR. SATO'S VISIT.
F.C.O. PASS UKMIS GENEVA TOKYO HONG KONG AND SECUL.
MR. FREEMN
/REPEATED AS REQUESTED/
ADDITIONAL DISTRIBUTION
HONG KONG INTERNATIONAL TRADE
INTERNATIONAL TRADE DISTRIBUTION
COMMODITIES DEPT.
FAR EASTERN DEPT.
HONG KONG DEPT. AMERICAN DEPT.
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