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CYPHER/CAT A
IMMEDIATE HONG KONG
TELEGRAM NUMBER 652
CONFIDENTIAL
NEUTRAL
TO FOREIGN AND COMMONWEALTH OFFICE
18 AUGUST 1969
ADDRESSED FCO AS TELNO. 652 OF 18TH AUGUST RFI OTTAWA.
YOUR TELEGRAM 542. CANADIAN TEXTILES.
I WISH TO BE PUT ON RECORD AS FOLLOWS, FOR THE INFORMATION OF
MINISTERS.
2. I MUST FIRST POINT OUT THAT THE EXPLANATIONS YOU HAVE NOW
GIVEN ME HAVE ARRIVED ONLY TWO DAYS BEFORE NEGOTIATIONS ARE DUE
TO START AND TWO MONTHS AFTER I MADE IT CLEAR THAT I ENVISAGED
THE EXTENSION OF RESTRAINTS.
2
3. YOUR (A). IN SO FAR AS HONG KONG AND OTHER COMMONWEALTH COUNTRIES IS CONCERNED, H.M.G.'S ANNOUNCED POLICY IS TO IMPOSE TARIFF ON COTTON IN 1972 AND TO RESERVE THE RIGHT TO IMPOSE QUOTAS
UNDER THE CTA AS WELL. SURELY THIS DECISION IS FAR MORE LIKELY
TO BUILD UP THE PRESSURES YOU FEAR THAN A SMALL EXTENSION IN
THE M.M.F. FIELD IN ACCORDANCE WITH ESTABLISHED POLICY ON NON-
COTTON TEXTILES.
4.
YOUR (B). I DO NOT FOLLOW YOUR ARGUMENT.
EXTENSION FURTHER
INTO RESTRAINTS IN THE M.M.F. FIELD CANNOT PREJUDICE ANY DECISION
ANY FURTHER THAN IT HAS BEEN PREJUDICED ALREADY.
RC EIVED IN
REGISTRY Nɔ.51 19 AUG 1969
HKX6/331/1
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