Hong Kong Telegram 339
Reference
R&R
Swordish File
Although this telegram, dated 30th April, does not call for urgent reply, we probably ought to send some thing, even it' only an interim reply, by the end of this week.
2.
Industries 1 are examining in detail, with the figures which have been supplied by the Swedes, the case presented for extending the coverage of export restraint on non-cotton items. The Swedes have proposed
a) The continuation of restraint arrangements for all the present items
save one (wowen's and girls' continuous fibre sweaters)
b) The addition of women's and girls' discontinuous fibre anoraks to the anoraks already controlled (making a full house), with a reduction of the total anorak quota to about half the previous level
c) Restraint instead of export authorisations f'or:-
Women's and girls' knitted umf underwear
Women's and girls' if blouses(Polyester/cotton skirts
d) An export authorisation system for men's and boys' discontinuous
fibre sweaters.
Hong Kong say that they consider that a good case has been made out on all these items; we shall be able to express an opinion on this when have computated their work on the figures, but in any case it is a considerable extension of the existing arrangements and goes a long way beyond what we told Hong Kong (in telegram 201 of 25th March) that we were prepared to accept, which was no more than continuation, if justified at figures, of existing restraints for another year.
3.
It may well be some time before we can reach a generally agreed decision on what we should say to Hong Kong about the new proposals. Meanwhile, there- fore, I suggest that the attached draft telegram should be considered by the recipients of this minute and if agreed despatched on Friday 9th May.
4.
You will see from the attached copy or a letter from Kr. H. Stewart that the FCO think that it may be necessary to hold the Hong kongers back from attempting to reach agreement with the Swedes by 20th Kay, and I have therefore hinted at this in my draft.
Mr. Dunnett, CRE 1
Kr. Kemmis, CRE 1
hr. S. Stewart, I1
Miss Volch, I1
Mir. H. H. Stewart, FCO.
(Miss J. R. Elliott)
CRE 1
P May, 1969.
- 8 MAY 1969
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