visit was that it would make it more difficult for the

Canadians to take hasty action by demonstrating once

again Hong Kong's responsible conduct on textile

questions.

I do not think that Hong Kong would for

long retain that reputation if they were as silent on

these occasions, and as little forthcoming, as Mr. Stewart

evidently expects them to be.

4.

However, I have now sent Hong Kong a telegram

asking that we should be consulted before they enter

into any commitment to negotiate with the Canadians and

asking also for all available statistics. I think that

I have made in that telegram the main points which

Mr. Stewart would no doubt wish to see made. I am coping the draft (lut it has

5. Of course we can expect to see the same difficul-

ties arise out of the Canadian desire to restrain Hong

Kong exports in polyester/polynosic shirts as arose

Greatly

with the Swedish negotiations. I sincerely hope that

it will be possible to resolve these with rather more time to spare than we allowed ourselves on that last

occasion.

already issued) toya to Steward.

NOTHING TO BE WRITTEN IN THIS MARGIN

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