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CYPHER/CAT A
PRIORITY OTTAWA
TELNO. 772
CONFIDENTIAL
NEUTRAL
CONFIDENTIAL
TO FOREIGN AND COMMONWEALTH OFFICE
9 AUGUST 1969
YOUR TELEGRAM NO. 513 TO HONG KONG.
HONG KONG/CANADIAN TEXTILE NEGOTIATIONS.
AS YOU WILL HAVE SEEN FROM OUR TELEGRAM NO. 87 TO HONG KONG OF 1 AUGUST, WHICH WAS COPIED TO YOU, WE HAVE IN FACT ALREADY WARNED THE CANADIANS THAT THE DATES OF THE NEGOTIATIONS WITH HONG
KONG MIGHT BE AFFECTED BY THE NEED FOR CONSULTATIONS BETWEEN THE
HONG KONG AUTHORITIES AND LONDON. NEVERTHELESS, NOW THAT A DATE HAS FINALLY BEEN FIXED FOR THE NEGOTIATIONS WITH HONG KONG AFTER CONS-
IDERABLE DIFFICULTY (TO WHICH CANADIAN ERRORS IN COMMUNICATIONS ADMITTEDLY CONTRIBUTED) WE WOULD EXPECT THE CANADIANS TO REACT
STRONGLY TO THE LINE SUGGESTED IN PARAGRAPH 4 OF YOUR TELEGRAM
NO. 513 TO HONG KONG NOTABLY THE IMPLICATION THAT AT THE NEGOT-
IATIONS ON 18/19 AUGUST THERE WILL BE NO FINAL AGREEMENT ON THE
QUESTION OF POLYESTER/POLYNOSIC SHIRTS. AS YOU ARE AWARE THE
CANADIANS HAVE BEEN PRESSING THE HONG KONG AUTHORITIES VERY HARD
ON THIS ISSUE FOR SOME MONTHS. WE AGREE WITH THE VIEW EXPRESSED
IN PARAGRAPH 5 OF HONG KONG TELEGRAM NO. 633 TO YOU THAT IF THEY
DO NOT SOON GET SATISFACTION FROM HONG KONG ON THIS CATEGORY OF
SHIRTS THEY MAY INDEED BE TEMPTED TO IMPOSE A SURCHARGE ON THEM.
AGAINST THIS VIEW IS THE FACT THAT PRESSURE ON THE CANADIAN AUTH-
ORITIES WILL TO SOME EXTENT BE EASED BY THE FACT THAT PARLIAMENT
IS NOT SITTING AND THE NEWSPAPERS ARE ONLY NOW CONCERNED WITH
THE PLIGHT OF THE WHEAT PRODUCERS..
../AT
CONFIDENTIAL
RECEIVED IN REGISTRY No.51) 11 AUG 1969
HKK4/231/1
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