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IT SEEMS TO ME THAT THE RESPONSIBILITY FOR THIS SITUATION CANNOT BE
ASSIGNED TO THE CANADIAN GOVERNMENT. I WOULD HOPE THAT THIS
WILL BE MADE CLEAR TO ALL CONCERNED AND IN PARTICULAR THAT, IF THERE
IS ANY DISCUSSION OF THE STATE OF NEGOTIATIONS WITH THE TEXTILE
ADVISORY BOARD, THEY BE INFORMED OF THE CANADIAN POSITION IN THE
TERMS I HAVE OUTLINED IT.
FINALLY, PERHAPS I MAY BE ALLOWED TO SUGGEST THAT IT WOULD BE
HELPFUL IF AT SOME TIME IN THE NEAR FUTURE WE COULD BE GIVEN A
DEFINITIVE STATEMENT OF HONG KONG'S NEGOTIATING AUTHORITY, IN GENERAL,
IN MATTERS OF EXPORT RESTRAINT. WE HAVE ALWAYS ASSUMED THAT IN A
PRACTICAL SENSE, HONG KONG HAD FULL AUTHORITY. AS RECENTLY AS LAST
YEAR, WE MADE AN INFORMAL SUGGESTION WHEN THERE WAS SOME DELAY IN
BEGINNING CONSULTATIONS ON TOWEL RESTRAINTS, THAT SOME OF THE
PRELIMINARY DISCUSSIONS MIGHT TAKE PLACE IN OTTAWA BETWEEN OURSELVES -
AND THE BRITISH HIGH COMMISSION ACTING ON BEHALF OF THE HONG KONG
AUTHORITIES. WE WERE TOLD BY THE HIGH COMMISSION THAT HONG KONG
HAD TURNED DOWN THIS SUGGESTION ON THE GROUNDS THAT THEY AND THEY
ALONE HAD THE RESPONSIBILITY FOR EXPORT RESTRAINT NEGOTIATIONS'.
ENDS.
2. FOLLOWING IS TEXT OF HONG KONG DELEGATION LEADERS REPORT, BEGINS.
'APART FROM THE GENERAL STATEMENT OF THE CANADIAN POSITION THE
WHOLE DISCUSSION DURING THE LAST DAY AND A HALF HAS BEEN ON COTTONS,
ESPECIALLY COTTON TOWELS AND TOWELLING, THE CANADIANS HAVE BEEN
RIGID. THEY ARE UNDOUBTEDLY TAKING ADVANTAGE OF OUR INABILITY TO
NEGOTIATE ON THE NON-COTTON ITEMS. [SIC]
2. THE MAJOR DIFFICULTY HAS BEEN OVER CABINET TOWELLING, A FABRIC
CAUGHT UNDER THE BILATERAL AGREEMENT ON FABRICS. CANADIANS CLAIM
THAT THIS IS A DIRECT SUBSTITUTE FOR FINISHED CABINET TOWELS
/AND
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