16.

Swedes would agree to drop the Blouses and Underwear.

Mr. Jordan said he could not help feeling that it was up to Hong Kong

to decide whether or not to concede on all three items was in her own

best interests.

Sir Arthur Snelling pointed out to Mr. Jordan that it was most

important that Hong Kong should reach their decision in the light of

the position in the .K. If, by the granting of restraints by Hong Kong

to Sweden, the U.K. found itself compelled to ask Hong Kong for similar

restraints, it would then be of little use för Hong Kong to put forward

special pleading as to why'such restrictions should not be imposed.

He would advise Hong Kong not to exercise their own judgement to the

extent of affecting their position in the U.K. market.

Mr. Jordan said that Hong Kong had always accepted that they must keep

their policies in line with those of the U.K.

Nevertheless he still

felt that Hong Kong should make their own decision in regard to Blouses

and Underwear,

Sir Arthur Snelling asked if it might be possible to reach identity of

view in this matter if the Stockholm meeting were postponed for a week.

He suggested that a decision would have to be reached very quickly

about this as it would, of course, be necessary to contact the British

Embassy in Stockholm that afternoon if a postponement was required.

Mr. Carey agreed with this suggestion.

H.M.G. had so far withstood

the pressures from industry and wished to continue to do so but this

became more difficult every time further restraints were granted by

Ind. 1. would be very glad

Hong Kong with another importing country.

4

to discuss their position with Mr. Jordan.

Mr. Jordan said he felt he should go to Stockholm as arranged. He

would explore the hint that Baron de Geer had given to Mr. Goldsmith

and see if it were possible to persuade the Swedes to drop their request

for restraints on Blouses and Underwear. Whilst he was in Stockholm,

Ind.1 might prepare details of the U.K. case with supporting statistics

/ which

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