CONFIDENTIAL
HONG KONG TELEGRAM NO.603 TO ECO.
-3-
5.
AS YOU DID NOT REACT TO EITHER OF THESE TELEGRAMS I
NATURALLY ASSUMED THAT YOU ACCEPTED THE LINE PROPOSED. OUTCOME OF REFUSAL TO CONSULT CANADIANS ON POLYESTER/POLYNOSIC SHIRTS, AND TO ACCOMMODATE THEM IF REASONABLE CASE IS MADE OUT, WOULD UNDOUBTEDLY BE THE IMPOSITION OF SURCHARGE. SUCH ACTION COULD LEAD TO ARGUMENT ON DISCRIMINATORY USE OF ARTICLE-IXI XI- WHICH, GIVEN KNOWN CANADIAN VIEWS ON THIS, COULD BE EXTREMELY EMBARRESSING IN RELATION TO THE AMERICANS. IT COULD ALSO PRODUCE CONSIDERABLE DIFFICULTIES WITH TEXTILES ADVISORY BOARD AND INDUSTRY HERE IF IT BECAME KNOWN THAT CANADIANS HAD BEEN REFUSED, ON ADVICE FROM LONDON, AND THAT HONG KONG'S TRADE HAD CONSEQUENTLY BEEN
CUT OFF(ESPECIALLY FOLLOWING SO SOON AFTER THE ANNOUNCEMENT ON U.K. TARIFF ON COTTON TEXTILES). BOARD HAS ALREADY ADVISED THAT
BEST PDILABLE (GRP UNDEC] ACCOMMODATION SHOULD BE REACHED WITH CANADIANS ON THE ISSUE.
6. WE ARE WELL AWARE OF YOUR INTEREST IN ANY EXTENSION OF RESTRICTIONS ON MMF GARMENTS AND YOU WILL BE NOTIFIED OF THE DETAILS OF THE CANADIAN CASE ON POLYESTER/POLYNOSIC SHIRTS IN DUE COURSE. (OUR PRESENT STATISTICAL INFORMATION IS LIMITED TO THAT CONTAINED IN OTTAWA TELEGRAM 58 TO ME OF 31 MAY.
FCO PLEASE PASS TO ALL.
SIR D. TRENCH
[REPEATED AS REQUESTED).
INTERNATIONAL TRADE DISTRIBUTION:
HONG KONG DEPT
&&&&
CONFIDENTIAL
ADDITIONAL DISTRIBUTION:
HONG KONG: INTERNATIONAL TRADE