!

CYPHER CAT/A

ROUTINE HONG KONG

TELEGRAM NUMBER 854

TO FOREIGN AND COMMONWEALTH

OFFICE

6 NOVEMBER 1969.......

ADM C: COPY

319

sent to

Head, Commatitis Di Head, Hong Kong Do Dir C. Ć Neill.

[NEUTRAL]

CONFIDENTIAL ADDRESSED F C O TELO 854 OF 6 NOVEMBER R FI WASHINGTON, TOKYO, OTTAWA, UKDEL EEC, UKMIS GENEVA, SEOUL AND HONG KONG GOVERNMENT OFFICE LONDON.

U.S. TEXTILES.

RECEIVED IN

51

- NOV 1969

EST

RE

288

GENEVA TELEGRAM 551 TO YOU. 288) HKK6/204/1

NEXT

REF.

I HAVE SEEN THE DRAFT RECORD OF THE DISCUSSIONS IN GENEVA

(ADVANCE COPIES HAVE BEEN SENT TO THOSE WHO TOOK PART FOR CHECKING) AND MELVILLE'S LETTER OF 17 OCTOBER TO GOLDSMITH.

2. I AM INCLINED TO DRAW TWO CONCLUSIONS:

(A) THE U.S. CASE EVEN ON PARTICULAR PRODUCTS NOW SEEMS LIKELY TO BE SO WEAK THAT IT IS POSSIBLE THAT OUR PROPOSED SELECTIVE APPROACH WOULD RESULT IN A REJECTION OF EVERY AMERICAN REQUEST, SHOULD THEY BE PERSUADED TO ADOPT THIS COURSE SEMICOLON OR

IN CONCEDING VERY WEAK CASES, THE FORMER COULD PRECIPITATE

U.S. POLITICAL ACTION WHILE THE LATTER COULD PREJUDICE OUR

DEFENCES BOTH AGAINST FURTHER CASES PRESENTED BY CTHER SECTORS

OF THE U.S. INDUSTRY AND VIS A VIS OTHER COUNTRIES.

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