Reference
with (10 B. Trache Noles handed by Mr. Goldsmith to
on basis of which
curtal No. 590 was
Mr. Welford
"drasted. 154 10/9
2.
Forget about the eleven points.
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We appreciate why Hong Kong would like to resume negotiations with the Canadians early next week and we have no objections.
3. We should normally have liked to have been associated with the conduct of the talks but in this case it will not be prac- ticable for us to be so.
4.
We fully accept that the decision on restraints with Canada rests with Hong Kong but we hope they will give full weight to the following points:
(Jtrs au vied
(1) That restraints should only be conceded when the case
is such that Article 19 of the GATT might otherwise have been invoked.
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(11) or that there may be other special circumstances which
make it seem in the best interests of Hong Kong (e.g. a threat of immediate action) to do so. prequiicial altik's (iii) In the Canadian case we are rather doubtful whether
either of these criteria apply in the case of blouses and trousers made from polyester-cotton and the extent and level of restraints between Canada and Japan seem relevant.
(iv) We are therefore asking Hong Kong seriously to consider
whether a strong effort should not be made to end the restraint on these two items.
5. When full information is available about the Norwegian case for continuing restraints, we shall wish to consider the extent of consultation and association we wish to exercise. In the саве of Norway, we shall certainly hope to be represented on the talks.