4.
own
-
They had made
and like us they believed that if the Americans got the 'extended C.T.A.' they would misuse it. their views clear to Stans and Co.
23.67
If this policy was to be maintained in Canada it was necessary to be able to show that where real problems arose they could continue to be handled satisfactorily.
24.
I agreed, but said that it was very important to
To concede Hong Kong that the case should be a strong one. only in really strong 'injury' cases strengthened our anti- Stans case but at this juncture to concede weak cases would strengthen Stans' hand. I said that I had just come from Sweden where I had refused to concede two out of five cases.
25.
Howarth said the Canadians were telling the Japanese that if they would not concede a strong case, they were playing into Stans' hands and might cause Canadian Ministers to change their policy on the Stans initiative.
26.
At this point Mr. Guinness asked a question about the Department of Industry, Trade and Commerce's study of the textile industry. Howarth said that this was a long-term exercise not particularly relevant to present problems but he did mention that the Canadian Government accepted, though it had not said so, that the textile industry would have to contract.
27.
I said that the Hong Kong Government would need to be convinced that the additional restraint that the Canadians were seeking was still necessary in the light of the action they had already taken to deal with the situation that arose in 1968, when Hong Kong lost out to other exporting countries. (I also mentioned again the loss in 1967, when orders for p/c shirts were diverted to Singapore and Malaysia.)
28.
I then went on to refer to Rodney Grey's allegations
I said that I (see paragraph 2(a) of Ottawa tel. 57/69).
They re- had no knowledge of the trade in p/p at the time. ferred to their record, according to which we had said exports of p/p were negligible. I said I couldn't have said this because I didn't know. They then admitted that this comment had been made by Mr. Dorward. I pointed out that we had had no statistics at the time; this was just Mr. Dorward's impression; and anyway would refer only to past trade would not have known of the impending build-up.
29.
A
he
The Canadians were clearly embarrassed and attempted
I then referred to the
to play down Rodney Grey's remarks.
B.H.C. record (I had read their file) and quoted Robin Gray's note that Rodney Grey had said 'Mr. Jordan was clearly ignorant
had I had said or dishonest'. I said 'ignorant perhaps
no statistics on the trade because I had never received Howarth's letter to Miller. Dishonest I rejected with vigour. (See also paragraph 43.)
30.
I went over Howarth's July 1968 offer of growth and swing if we included p/p and the point that we gave up growth because we would not include p/p - justifying paragraphs 6 and 7 of our memorandum of 8 May, to which, according to paragraph 2(a) of Ottawa tel. 57; Grey had taken exception.
RESTRICTED
31./