CONFIDELAL
4.
Reference.......
cônceded if we allowed the Hong Kong
authorities to negotiate as they wish.
(14) We could, if we wished, also make an
approach to the Canadians possibly immediately
after the talks in Hong Kong in view of
the time factor, in order to explain that
we would have serious difficulties
about any further extensions of voluntary
restraint arrangements in present
circumstances.
(15) We may be sure that the Hong Kong
authorities will strike the best bargain
they can. They do not want restraints
on their exports any more than we do.
(16) No evidence has been produced to suggest
that the Canadian case now is less strong
than it was when the voluntary restraint
arrangements were first conceded.
(17)
Indeed it is understood that the exports
to Canada of Polyester/Polynosic shirts
have grown quite fast.
We could suggest to Hong Kong that any
arrangements made should be dependent
on what is decided in negotiations between
Canada and Japan on restraint arrangements
and that in these circumstances any
agreement reached should be subject to
review at, say, the end of this year.