CYPHER/CAT -A-

PRIORITY OSLO

CONFIDENTIAL

TO FOREIGN AND COMMONWEALTH OFFICE

4

PRIORITY OSLO TELNO 3 TO HONG KONG

22 SEPTEMBER 1969

CONFIDENTIAL

NEUTRAL

ADDRESSED TO HONG KONG TELNO 3 OF 22 SEPTEMBER REPEATED FOR

INFO TO FCO.

FOLLOWING FROM HO.

NORWEGIAN TEXTILE NEGOTIATIONS.

STATISTICS MADE AVAILABLE ON FRIDAY AND WE WERE ABLE TO EXAMINE

THEM OVER WEEKEND.

2. THEY DROPPED 841111 AT COMMENCEMENT AND WE AGREED NOT

TO REVIEW COTTON AGREEMENTS.

OF STATISTICS.

3.

COMMENTS ON NON-COTTONS:

TWO SESSIONS DEVOTED TO REVIEW

EXISTING OR REQUESTED RESTRAINTS

EX 465 AND EX 866: DECLINE IN PRODUCTION LEVELLED OFF JAN/

JUNE 1969, THOUGH FIGURES FOR 366 NOT CONFINED TO ACRYLIC.

EX 739: SLIGHT INCREASES IN PRODUCTION TO 1968, BUT

DECLINE OF 13 PER CENT JAN/JUNE 1969. MARKET DECLINE

CONTINUED. HONG KONG IMPORTS DROPPED VERY SHARPLY, BUT IMPORTS FROM

OTHER COUNTRIES INCREASED. WE ARGUED THAT CONTINUED RESTRAINT

WAS NOT JUSTIFIED IN VIEW OF UNDERUTILIZED QUOTA.

EX 713:

SLIGHT DECLINE IN PRODUCTION TO 1968 WITH 17 PER

CENT INCREASE IN JAN/JUNE 1969. COMBINED WITH 111

THERE IS NO DECLINE WHATEVER AND WE ARGUED ACCORDINGLY. WE

POINTED OUT TRADE WAS IN ANORAKS AND SUGGESTED FURTHER BREAKDOWN

RECEIVED IN

REGISTRYM- 51

23 SEP 1969

HKK6/394/1

CONFIDENTIAL

/IF

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