CYPHER/CAT A
IMMEDIATE HONG KONG
TELEGRAM NUMBER 647
CONFIDENTIAL
ว
TO FOREIGN AND COMMONWEALTH OFFICE
15 AUGUST 1969.
CONFIDENTIAL
NEUTRAL
ADDRESSED F C O TELNO 647 OF 15 AUGUST R FI OTTAWA.
YOUR TELEGRAMS NOS 536 AND 537.
CANADIAN TEXTILE NEGOTIATIONS.
ALTHOUGH I AM GRATEFUL FOR THE EFFORT WHICH HAS BEEN MADE TO
MEET MY DIFFICULTIES IN THIS MATTER I STILL DO NOT UNDERSTAND
WHAT ARE THE MAJOR ISSUES OF POLICY WHICH LEAD YOU TO CONSIDER
THAT NEGOTIATIONS WITH THE CANADIANS ON THE M M F ITEMS SHOULD
NOT PROCEED AS I WOULD WISH.
2.
AGAIN, AS IN THE SWEDISH CASE (MY TEL. 475), NOT KNOWING PRECISELY WHAT THESE MAJOR ISSUES ARE HELD TO BE, 1.FIND IT
DIFFICULT TO COMMENT.
3.
YOUR ONLY REFERENCES ARE TO 'EXTENSION OF M M F RESTRICTIONS RAISING PROBLEMS FOR THE U.K., 'THE CASE FOR VOLUNTARY RESTRAINTS', AND 'DANGERS IN THE CONTEXT OF STANS' PROPOSALS', BUT YOU HAVE GIVEN ME NO INDICATION OF HOW YOU THINK THE SITUATION HAS CHANGED SINCE THE DISCUSSIONS IN LONDON IN JUNE PRECEDING OUR NEGOTIATIONS IN STOCKHOLM, AT WHICH THESE ISSUES WERE THRASHED OUT AT LENGTH.
4. AT OPENING OF THOSE DISCUSSIONS INDUSTRIES WERE ASKED TO
EXPLAIN WHAT WERE MAJOR POINTS OF POLICY THAT THEY BELIEVED
MADE CONCESSION OF RESTRAINT UNDESRIRABLE. STEWART THEN SAID
TWO 'BASIC RISKS' WERE INVOLVED:
CONFIDENTIAL
/(A) DIVERSION
LAST
DECEIVED IN
REP,
6.9
STRY No.51 18 AUG 1969
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REF.
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HKK 6/201/1