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CYPHER/CAT A

CONFIDENTIAL

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IMMEDIATE FOREIGN AND COMMONWEALTH OFFICE

TO HONG KONG

TELEGRAM NUMBER 252

18 APRIL 1969. (HKK 6/531/1)

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CONFIDENTIAL.

UTRAL.

ADDRESSED TO GOVERNOR HONG KONG TELEGRAM NO.252 OF 18 APRIL REPEATED FOR INFORMATION TO STOCKHOLM AND UKMIS GENEVA (FOR JONES).

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YOUR TELEGRAM 301. SWEDISH TEXTILE NEGOTIATIONS.

IT IS POSSIBLE THAT SWEDES DO INTEND TO TRY TO INCLUDE. NON- RESTRAINED ITEMS IN THIS ROUND OF DISCUSSIONS BUT WE THINK YOU SHOULD

NOT BE PREPARED TO CONSULT WITH THEM ON ANY OTHE BASIS THAN THE POSSIBLE EXTENSION OF THE EXISTING ARRANGEMENTS FOR ANOTHER YEAR.

WE AGREE WITH THE TERMS YOU HAVE USED IN YOUR REPLY OF 3 APRIL TO SWEDISH NOTE. MOREOVER, WE DO NOT THINK THAT DE GEER'S STATEMENT TO GOLDSMITH COULD PROPERLY COVER RESTRAINT REQUESTS ON ITEMS NOW UNDER E/AS SINCE THIS WOULD INVOLVE MORE THAN AN EXTENSION (IN TIME) OF THE EXISTING ARRANGEMENTS. YOU COULD NOT FAIRLY BE ACCUSED OF

INTRANSIGENCE FOR DECLINING TO GO OUTSIDE AGENDA. IF THE SWEDES

THEN PRESSED FOR FURTHER CONSULTATIONS ON A MORE EXTENDED BASIS OM A FUTURE OCCASION, WE AGREE THAT YOU WOULD HAVE TO CONSIDER THIS, BUT THERE ARE CONSIDERABLE TACTICAL ADVANTAGES TO BE GAINED FROM

AS LONG POSTPONEMENT AS POSSIBLE OF WHAT WOULD BE A POTENTIALLY EMBARRASSING OCCASION OF GREAT SIGNIFICANCE TO ALL THOSE CONCERNED

AT PRESENT TO RESIST AMERICAN PRESSURES. NO DOUBT IF YOU WERE ASKED

TO CONSULT AGAIN LATER ABOUT NEW RESTRICTIONS YOU WOULD IN ANY CASE

ONLY AGREE AFTER GREAT SHOW OF RELUCTANCE.

2. IT IS UNFORTUNATE THAT THE ADDITIONAL FIGURES FOR WHICH

YOU HAVE ASKED ARE STILL NOT AVAILABLE BECAUSE IT IS IMPORTANT

CONFIDENTIAL

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