CYPHER/CAT A

CONFIDENTIAL

PRIORITY UK MISSION GENEVA TO FOREIGN AND COMMONWEALTH OFFICE

9 OCTOBER 1969

TELEGRAM NUMBER 536

27/

CONFIDENTIAL

[ NEUTRAL]

RECE!

Ri G

ADDSD TO F CO TEL NO 536 OF 9 OCTOBER REPTD FOR INFMN TO

ASHINGTON, HONG KONG AND SAVING TO TOKYO AND OTTAWA.

10 OCT 1969

MY TELEGRAM NUMBER 535.

LAST

RIF

264

U.S. TEXTILE IMPORTS.

NEXT

REF.

1877

AT A LONG AND USEFUL SESSION WITH THE JAPANESE LAST NIGHT WE WERE REASSURED THAT THEY WOULD CONTINUE TO TAKE A FIRM LINE, AT LEAST DURING THE PRESENT G A T T MEETING. THEIR TACTICS WILL BE TO MAINTAIN THAT THEY HAVE NOT BEEN CONVINCED BY THE AMERICAN CASE FOR ACTION OUTSIDE THE FIELD OF THE PRESENT COTTON ARRANGE- MENTS, WHILE LEAVING THE WAY OPEN FOR FURTHER BILATERAL AND MULTILATERAL DISCUSSION. ON THE LATTER THEY HAVE NOT YET GOT

THAT

A FIRM VIEW HOW FURTHER MULTILATERAL DISCUSSION SHOULD BE ORGANISED, BUT NAKAYAMA SAID THAT HE HAD SUGGESTED TO THE AMERICANS THAT THEY SHOULD PRESS FOR A GENERAL DISCUSSION, FOR EXAMPLE UNDER ARTICLE XXII:(2), AFTER THE PRESENT ROUND OF BILATERAL DISCUSSIONS HAS BEEN COMPLETED. HE SUGGESTED, SOMEWHAT NAIVELY, FAILURE TO CONVINCE THE CONTRACTING PARTIES AT SUCH DISCUSSION THAT THE AMERICANS HAD A CASE WOULD ENABLE THE ADMINISTRATION TO GET THEMSELVES OFF THE HOOK WITH THEIR COTTON TEXTILE INTERESTS AND CONGRESS. THE AMERICAN REACTION APPARENTLY WAS THAT THERE WOULD BE NO POINT IN HAVING A MULTILATERAL DISCUSSION WHICH FAILED TO GIVE THEM WHAT THEY NEEDED: AND THE JAPANESE CONCLUSION WAS THAT THEY WOULD GO ON PRESSING BILATERALLY TO SEE IF THEY COULD BREAK THE CHAIN AT ITS WEAKEST LHIK. THEY THEREFORE EXPECTED THAT GREAT PRESSURE WOULD BE PUT ON THEIR PRIME MINISTER WHEN HE GOES TO WASHINGTON NEXT MONTH.

F C O PASS TO WASHINGTON, HONG KONG AND SAVING TO TOKYO AND OTTAWA.

[REP-ATED AS REQUESTED]

SIR E MELVILLE

INTERNATIONAL TRADE DISTRIBUTION

H.K.D.

COMMODITIES DEPT.

AMERICAN DEPT.

CONFIDENTIAL

ADDITIONAL DISTRIBUTIONED IN H.K. INTERNATIONAL TRADE 51

O OCT 1969

N

HKIL 6/304/1

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