CYPHER/CAT-A-
CONFIDENTIAL
IMMEDIATE FOREIGN AND COMMONWEALTH OFFICE
TELEGRAM NUMBER 81
TOP C
TO HONG KONG
29TH JANUARY
(HK K6/531/1)
1962
CONFIDENTIAL.
NEUTRAL.
ADDRESSED TO GOVERNOR HONG KONG TELNO 81 OF 29/1 AND TO UKMIS
GENEVA AND STOCKHOLM.
40) YOUR TELEGRAM 31.
OUR COMMENTS ON THE LINE WHICH YOU PROPOSE ON THE THREE ITEMS TO BE
DISCUSSED IN GENEVA ON FEBRUARY 5 ARE AS FOLLOWS:-
2. ITEM 462.
WE AGREE WITH YOUR ASGESSMENT PROVIDED THAT TRADE IN ACRYLICS 18
TAKEN INTO ACCOUNT IN DETERMINING WHETHER THE DOMESTIC INDUSTRY
HAS BEEN INFORMED, WE THEREFORE AGREE THE LINE PROPOSED IN YOUR
PARA 3(A). YOUR SECOND FALL-BACK POSITION IN PARA 3(B) MIGHT BE AN
OFFER TO OPEN NEGOTIATIONS AT ANY TIME WHEN THERE WAS NEW EVIDENCE OF
HJURY, WHAT WE ARE MOST ANXIOUS TO AVOID IS ANY IMPLICATION THAT
THE RESTRICTIONS SHOULD BE EXTENDED ANOTHER YEAR. AS REGARDS YOUR
PARA 3(C) WE AGREE THAT IN THE LAST RESORT RESTRAINT ON THIS ITEM
MAY BE CONCEDED PROVIDED THAT FIGURES FOR SWEDISH PRODUCTION AND
CONSUMPTION OF MENS' AND BOYS' KNITTED OUTERWEAR ETC SHOW THAT
PRODUCTION OF WOOL AND ACRYLIC GARMENTS TOGETHER HAS DECLINED
SIGNIFICANTLY IN A MARKET THAT IS STABLE OR EXPANDING, BUT IF NO
SUCH DECLINE IS TAKING PLACE THEN THE DECLINE IN THE PRODUCTION OF
WOOL GARMENTS ARISES FROM SUBSTITUTION AND CANNOT BE ATTRIBUTED
TO IMPORTS FROM HONG KONG, IN THIS CASE RESTRAINT OUGHT NOT TO BE
NECESSARY. YOU KNOW ALL THE ARGUMENTS ON THIS.
3. EX 751.
WE AGREE YOUR POSITION ON (A). AS REGARDS (B) CONSUMPTION OF
ANORAKS IN SWEDEN 16 CLEARLY BOOMING AND SWEDISH PRODUCERS APPEAR
REF.
40
45948
(ON THE MOST
CONFIDENTIAL