CYPHER/CAT A

CONFIDENTIAL

PRIORITY FOREIGN AND COMMONWEALTH OFFICE

TELEGRAM NO. 201

TOP COPY

TO HONG KONG

25 MARCH 1969

(K 6/531/1)

81

CONFIDENTIAL.

NEUTRAL.

ADDRESSED TO GOVERNOR HONG KONG TELEGRAM NO 281 OF 25 MARCH

REPEATED FOR INFORMATION TO STOCKHOLM, UKMIS GENEVA (FOR JONES).

62

72

a (56

YOUR TELEGRAMS NOS. 177,224 AND 246.

SWEDISH TEXTILE NEGOTIATIONS.]

WE NOTE FROM TEL 224 THAT YOU HAVE NOW ARRANGED WITH THE SWEDES THAT THE CONSULTATIONS SHALL COMMENCE IN HONG KONG WHEN THE

SWEDISH DELEGATION ARRIVE ON 23 APRIL.

2. THE INDICATIONS ARE THAT THE SWEDISH OBJECTIVE IN THESE CONSULT-

ATIONS WILL BE TO OBTAIN AN EXTENSION OF THE EXISTING ARRANGEMENTS

FOR A FURTHER PERIOD OF ONE YEAR WITHOUT PRESSING FOR RESTRAINTS

ON ANY FURTHER ITEMS.

Jus

3. WE HAVE CONSIDERED THE QUESTIONS RAISED BY PARAGRAPHS 2 AND

6 OF YOUR TELEGRAM NO. 177. IN RESPECT OF THE ITEMS ALREADY SUBJECT TO RESTRAINT, THERE IS NO OBJECTION TO YOUR CONCLUDING NEW RESTRAINT ARRANGEMENTS FOR THE YEAR BEGINNING 1 JULY 1969 ON THE ASSUMPTION THAT THE RELEVANT STATISTICS AND SUPPORTING ARGUMENTS

ARE ACCEPTABLE BOTH TO YOU AND TO US AS FORTIFICATION. WE HOPE

THAT THE STATISTICS WHICH YOU HAVE REQUESTED WILL ALSO SOON BE

MADE AVAILABLE TO US THROUGH OUR EMBASSY IN STOCKHOLM. WHEN THEY

ARE AVAILABLE WE SHALL EXAMINE THEM AND LET YOU HAVE OUR COMMENTS AS SOON AS POSSIBLE.

4. IN THESE CIRCUMSTANCES BOARD OF TRADE WILL NOT WISH TO BE REPRESENTED AT CONSULTATIONS IN HONG KONG. BUT WE WOULD WISH TO BE KEPT INFORMED OF PROGRESS AS IS YOUR NORMAL PRACTICE.

5. IF HOWEVER THE SWEDES IN THE EVENT SEEK AN EXTENSION OF THE RESTRAINT ARRANGEMENTS TO OTHER NON-COTTON TEXTILE GOODS NOT CURRENTLY UNDER RESTRAINT WE SHOULD HAVE TO GIVE CAREFUL CONSIDER-

ATION BOTH TO THE STRENGTH OF THEIR REQUEST AND TO YOUR

ASSESSMENT OF YOUR OWN INTERESTS BEFORE WE CAN AGREE. WE SHOULD

LE GRATEFUL THEREFORE IF YOU WOULD REFER ANY SUCH PROPOSALS TO

US BEFORE AGREEING ANY COMMITMENTS TO THE SWEDES.

STEWART

INTERNATIONAL TRADE DISTRIBUTION

HONG KONG DEPT.

F.3.D.

COMMODITIES DEPT.

******

CONFIDENTIAL

LAS!

P

76 85988

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