MCC 13/306/1

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12 Siewert

Commodities Department

284

13 October 1969

Raan

Rethow Muskel.

Cotton Textiles:

Japan

I am wondering what significance we should attach to Tokyo's Creda telegram No. 256 of 7 October.

2. I understand that Shaun Stewart saw Kawasaki and Nishiwaki of the Japanese Embassy on 4 October and that, according to Haines of CRE 2, who was present at the meeting, the Japanese press report is a reasonably accurate reflection of what Shaun said. It would appear, therefore, that this information may have been deliberately leaked by the Japanese Government.

3. It would I think be useful if we could let Tokyo have our comments on this report and an indication of the possible motives for the obvious leak. But before doing so it would be helpful to know a bit more about the circumstances and background of the moeting. We should also welcome a chance to see any record of what was said.

4. Speculating on the basis of what we know, it seems to me that the reasons for the leak to the press may go deeper than one might think. At first glance, it might be assumed that the Japanese Government merely wished to reassure possible waverers in this connection that Japan was not alone in resisting American demands for comprehensive restraints.

But that may

be too simple an explanation. You may know of other possible reasons. It might also be useful to ask Tokyo for their assessment.

5. I should be most grateful for your comments, and those of Shaun Stewart if he is back in the office. It would, I think, be desirable to send something to Tokyo within the next day or two.

D.I. Dunnett, Esq.,

CRE Division,

BOT

Copied to Mr. S. Stewart, BOT

Ar. Carter, HKD

Mr. Pickles, FED

(G.S. Whitehead)

> IN

31

HKILL/204/1

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