CYPHER/CAT A
PRIORITY HONG KONG
TELNO 246
CONFIDENTIAL
[NEUTRAL]
CONFIDENTIAL
TOP COPY
TO FOREIGN AND COMMONWEALTH OFFICE
24 MARCH 1969.
ADDRESSED F C O TELNO 246 OF 24 MARCH R F I
76
HA
STOCKHOLM, UKMIS GENEVA (FOR JONES), WASHINGTON (FOR HERMANN
AND HONG KONG GOVT. OFFICE LONDON.
SWEDISH TEXTILE NEGOTIATIONS.
160
RECEIVED IN ARCHIVES No.31
24 MAR 1969
HKK6/581/11
I AM INCREASINGLY CONCERNED AT THE DELAY IN RECEIVING YOUR REPLY TO MY TELEGRAM 177. WHETHER OR NOT WE SHOULD EXTEND THE EXISTING RESTRAINTS CAN BE DETERMINED ONLY WHEN THE FACTS HAVE BEEN
EXAMINED, BUT HAVING REGARD TO THE PROVISIONS OF THE C.T.A. AND ARTICLE XXII OF THE GATT, I DO NOT SEE THAT WE CAN DECLINE
· TO CONSULT. IF WE DID, THEN ON COTTON, THE SWEDES WOULD BE ENTITLED TO IMPOSE IMPORT RESTRICTIONS UNDER PARA 3 OF ARTICLE ON NON-COTTON OUR REFUSAL 3 OF THE COTTON TEXTILES AGREEMENT.
WOULD STRENGTHEN THE SWEDES HAND IF THEY DECIDED TO USE ARTICLE
XIX OF THE GATT.
2.
(A) COTTON GARMENTS.
PERFORMANCE HAS BEEN GENERALLY POOR
AND I WOULD HOPE TO PERSUADE THE SWEDES THAT THE SCOPE OF FUTURE RESTRAINT, IF ANY, COULD BE NARROWED.
(B) THE CRUX OF THE ARGUMENT IS WHETHER THE SWEDES HAVE AN ARTICLE-XIX-TYPE CASE', I.E. WHETHER THEY CAN SHOW 'SERIOUS INJURY TO DOMESTIC PRODUCERS'. WE CANNOT REASONABLY DENY THEM THE OPPORTUNITY TO MAKE THEIR CASE, PARTICULARLY AS WE HAVE RECENTLY ACCEPTED, IN THE GENEVA CONSULTATIONS, WITH THE OUTCOME OF WHICH YOU CONCURRED, THAT THEY HAVE SUCH A CASE IN CERTAIN
ITEMS.
x
CONFIDENTIAL
666710
81
/3. WHILE