6.
As part of their pressure tactics, the Americans have
now suggested bilateral talks with some of the low cost
producers including particularly Japan and Hong Kong.
Hong Kong has replied to this approach expressing willingness
to discuss the problem without commitment but to emphasise
that the case for wide-ranging restraints on American
importa does not seem to be established. Nevertheless,
they would be prepared to discuss problems relating to
specific products in the way they have done already with one
or two other countries over the past few years. Hitherto
the Americans have said that this selective approach would
not be acceptable to them but talks, in which our Mission
will participate, are to take place in Geneva next week
following the international meeting on cotton textiles.
Since we are an importer of textiles while Hong Kong is a
major exporter, our interests on all this differ in some
important respects. This has given rise to some difficulties
which it is hoped to discuss with the Governor in the near
future. Meanwhile for the purpose of the talks in Genova,
we do not expect any difficulty in presenting a united
front to the Americans.
- 4
CONFIDENTIAL
!