CYPHER CAT A
CONFIDENTIAL
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IMMEDIATE FOREIGN AND COMMONWEALTH OFFICE
TO HONG KONG
LE NO 642
23 SEPT 1969
(HKK 6/394/1)
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866
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NEUTRAL
ADDRESSED TO GOVERNOR HONG KONG TELEGRAM NO 642 OF 23 SEPT
REPEATED FOR INFORMATION TO OSLO.
OSLO TELEGRAM NO 249 TO F C 0.
NORWEGIAN TEXTILE NEGOTIATIONS.
WE ARE IN BROAD AGREEMENT WITH PROPOSALS IN PARAGRAPH 6, BUT WOULD WISH YOU TO TAKE ACCOUNT OF THE FOLLOWING POINTS.
2. OUR ONLY DOUBT IS THAT IT WOULD APPEAR INDEFENSIBLE TO AGREE TO RESTRICTIONS ON ALL THE KNITWEAR ITEMS. OUR OWN APPRECIATION
IS THAT :-
(A) THE NORWEGIANS DO NOT HAVE A CASE FOR CONTINUED RESTRAINTS ON
BECAUSE OTHER IMPORTERS (MAINLY OTHER WOMENS AND GIRLS KNITWEAR
EFTA COUNTRIES) CONTINUE TO INCREASE THEIR TRADE VERY RAPIDLY AND DECLINE IN PRODUCTION HAS LEVELLED OFF.
(B) THE STATISTICAL CASE ON MENS AND BOYS KNITWEAR CAN BE REPRESENTED AS MUCH STRONGER IN DISCUSSION WITH THIRD PARTIES. 3. WE APPRECIATE THAT NORWEGIAN CASE ON MENS AND BOYS KNITWEAR IS ACTUALLY VERY WEAK BECAUSE THE FALL IN PRODUCTION IS MORE THAN ACCOUNTED FOR BY THE FALL IN EXPORTS, BUT PRESENTATIONALLY THE ARITHMETIC ON INJURY IS MORE RESPECTABLE THAN IT IS IN THE CASE OF WOMENS AND GIRLS, AND THIS IS AN IMPORTANT CONSIDERATION VIS-A-VIS THE AMERICANS AND OTHERS.
4. WE WOULD THEREFORE HOPE THAT YOUR FIRST OFFER TO CONCEDE CONTINUED RESTRAINTS ON WOMENS AND GIRLS KNITWEAR COULD BE PRESENTED ON THE BASIS THAT WHILE CONTINUATION OF THE RESTRAINT COULD NOT BE JUSTIFIED IN ITSELF YOU WOULD BE PREPARED TO AGREE TO IT IF THIS WERE TO BE THE LIMIT OF THE NORWEGIAN REQUEST FOR RESTRAINTS. IF THE NORWEGIANS THEN INSIST ON RESTRAINTS ON MENS AND BOYS KNITWEAR ITEMS YOU COULD EMPHASISE THE WEAKNESS OF THEIR CASE AND SAY THAT RESTRICTIONS ON THESE ITEMS COULD ONLY BE ACCEPTED ON THE BASIS THAT RESTRAINTS WERE DROPPED ON THE WOMEN AND GIRLS WHERE THE CASE IS
EVEN WEAKER.
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