CYPHER/CAT A
PRIORITY OTTAWA
Canadian Files
21,
CONFIDENTIAL
ΤΟ FOREIGN AND COMMONWEALTH OFFICE
PRIORITY OTTAWA TELEGRAM NO. 57 TO HONG KONG
31 MAY 1969
CONFIDENTIAL NEUTRAL
ADDSD TO HONG KONG TELNO. 57 OF 31 MAY 1969 REPTD FOF. INFOR. TO FCO.
SHIRTS.
FOR JORDAN FROM GRAY.
RODNEY GREY (DEPT OF FINANCE) ASKED TO TALK URGENTLY AND INFORMALLY AND I SAW HIM YESTERDAY AFTERNOON. HIS TEAM INCLUDED ALEC MACPHERSON AND I HAD JOHN GUINNESS WITH ME.
2. GREY AND MACPHERSON WERE SOMEWHAT ON EDGE AND THEY TALKED FOR
A LONG TIME ABOUT THE SHIRT PROBLEM WHICH THEY REGARDED AS VERY
SERIOUS. THEY MADE THESE POINTS:-
(A) HONG KONG HAD SET LIMITS OF 142,000 DOZ. FOR COTTON SHIRTS AND 75,000 DOZ. FOR POLYESTER/COTTON SHIRTS. BUT ON TOP OF THIS 48,000 DOZ. POLYESTER/POLYNOSIC SHIRTS HAD ARRIVED. GREY FELT THAT YOU MUST HAVE KNOWN DURING THE DISCUSSIONS LAST YEAR OF THIS COMING BUILD-UP AND IN THIS CONNECTION TOOK CONSIDERABLE EXCEPTION TO
PARAGRAPHS 6 AND 7 OF YOUR MEMORANDUM OF 8 MAY.
(B) THE PROSPECT ON IMPORTS FROM HONG KONG THIS YEAR OF POLYESTER/ POLYNOSIC SHIRTS WERE ALARMING. IDENTIFIED ORDERS WERE:
EATONS
TRANS-CONTINENTAL
SIMPSONS
PEABODY
18,500 DOZ 43,000 DOZ
LARGE QUANTITIES
6,803 DOZM
(C) DRASTIC ACTION HAD BEEN TAKEN TO DEAL WITH IMPORTS FROM OTHER SUPPLIERS. MALAYSIA HAD OVERSHIPPED (SHE HAD FILLED A YEAR'S QUOTA IN A FEW MONTHS). IMPORTS FROM KOREA (WHO HAS ALSO OVER- SHIPPED) HAD EFFECTIVELY BEEN STOPPED BY A SURTAX OF OVER 100 PERCENT FOR TAIWAN POLYESTER/POLYNOSIC SHIRTS HAD BEEN ASSIMILATED WITH OTHER SHIRTS AND, AS I UNDERSTOOD IT, ONLY 24,000 DOZ WOULD BE ACCEPTED THIS YEAR COMPARED WITH 195,000. DOZ LAST YEAR.
REF.
NEXT
REF.
22
CONFIDENTIAL
RECEIVED IN
ROUNDY NO.51
2 JUN 1969
HILK 6/331/1
/(D)