CONFIDENTIAL

49

CYPHER/CAT A

IMMEDIATE FOREIGN AND COMMONWEALTH OFFICE

TELEGRAM NUMBER 513

CONFIDENTIAL.

NEUTRAL.

TOP

HONG KONG

COTO

AUGUST 1969

(HKK 6/331/1)

ADDRESSED TO GOVERNOR HONG KONG TELEGRAM NUMBER 513 OF 8 AUGUST, REPEATED FOR INFORMATION TO OTTAWA,

YOUR TELEGRAM NUMBER 633. CANADIAN TEXTILE NEGOTIATIONS.

2. WE DO NOT WISH TO COMMENT ON COTTON TEXTILE ITEMS (PARAGRAPHS 2 (A) (B) AND (C) OF YOUR TELEGRAM).

7.

3. HOWEVER, WITH REGARD TO THE NON-COTTON ITEMS (YOUR PARAGRAPHS 2 (D) AND 3), WE ARE DISTURBED TO FIND HOW FAR MATTERS SEEM TO HAVE GONE. WE HAVE NOT DISREGARDED TELEGRAMS REFERRED TO IN YOUR

PARAGRAPH 4 AND WE CERTAINLY APPRECIATE PROBLEMS RAISED IN YOUR

PARAGRAPH 5. THESE PROBLEMS WERE DISCUSSED WITH JORDAN HERE IN

JUNE, WHEN WE THOUGHT IT WAS MADE CLEAR THAT WE EXPECTED TO BE

CONSULTED IN ADVANCE OF ANY NEGOTIATIONS. AS YOU KNOW PARTICULARLY

IN PRESENT CIRCUMSTANCES ANY EXTENSION OF M.M.F. RESTRICTIONS RAISES

PROBLEMS FOR US ( SEE IN THIS CONNECTION BOARD OF TRADE PAPER ON TEXTILE PROBLEMS SENT UNDER COVER OF HUGHES' LETTER OF 31 JULY TO JORDAN.)

4. WE HAVE ONLY JUST RECEIVED FROM HONG KONG GOVERNMENT OFFICE THE

STATISTICS ATTACHED TO JORDAN'S REPORT OF HIS RECENT TALKS IN

OTTAWA, THESE DO NOT APPEAR TO ADD GREATLY TO INFORMATION PROVIDED

IN OTTAWA TELEGRAM NUMBER 58. BUT WE ARE URGENTLY CONSIDERING THEM

AND WILL LET YOU HAVE OUR COMMENTS AS QUICKLY AS POSSIBLE. WE FEAR

THAT WE SHALL NOT BE ABLE TO REACH FIRM VIEWS ON WHAT SHOULD BE

DONE IN TIME FOR YOUR TALKS WITH CANADIANS THIS MONTH. FOR 18/19

AUGUST THEREFORE WE MUST SUGGEST THAT YOUR LINE SHOULD BE TO PROBE

THE CANADIAN POSITION YET MORE FULLY WITH PARTICULAR REFERENCE TO

FOLLOWING POINTS:-

(A) EXTENT OF INJURY TO DOMESTIC INDUSTRY:

(B) WHICH COUNTRIES ARE CAUSING THE DAMAGE:

(C) TO WHAT EXTENT RESTRAINTS ARE ALREADY IMPOSED AND AT WHAT

LEVELS:

1 (42

LART

RE

NEX:

CONFIDENTIAL

REF.

5.0.

/(D)

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