Reference
Dr. Stewart
167
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HONG KONG/SWEDISH NEGOTIATIONS
On re-reading my minute of 20th June I find that paragraph 7 may give a misleading impression. For Hong Kong to concede any restraints outside the field of cotton textiles is, of course, a potentially embarassing precedent which our own industry, the Americans and others can use against us. (So, incidentally, are some of the restraints on knitted cotton goods conceded by Hong Kong to Sweden ostensibly under the umbrella of the L.T.A.) The British Shirt, Collar & Tie Manufacturers Association have already asked I.1. before my return from Stockholm, whether we are now having second thoughts about our refusal to entertain their request for restrictions on imports of shirts into the U.K. No doubt others will in due course ask similar questions.
I should be grateful in the circumstances if you and the others to whom this minute is being copied, would substitute the following for paragraph 7 of my minute of 20th June.
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"7. All in all I think there are some grounds for regard- ing the outcome as satisfactory. The Hong Kong Government and industry should be delighted with the result, for Mr. Jordan gave away far less than they were apparently ready to concede to reach agreement. For our part we should be reasonably satisfied in that only one new potentially awk- ward precedent was created which our own industry, the Americans and others may use against us, and this in a field (Shirts) where the Swedes may well have a respectable case under Article XIX of the GATT, and their industry probably has an even better case than our own. Since we had agreed to this concession in London before the negotiations in · Stockholm, it is fair to say that no unforseen concessions were made, and that no new awkward precedents were created about which we were not fully consulted in advance.'
11
FAST
R
166
(C. N. Jupp) I.1. Division
/ 23rd June, 1969
Mr. Carey
c.c. Mr. Peck, Sec.
Mr. Hughes, Sec. Mr. Kemmis, CRE1 Mr. Dunnett, CRE1
Mr. Stewart, I.1.
Mr. Goldsmith, CRE
Mr. Whitehead, F & CO
Mr. Carter, F & CO Mr. Stewart, F & CO
Mr. Heath, I.1.
Mr. Pryke, I.1. Miss Welch, I.1.
RECEIVED IN REGISTRY No.51. 25 JUN 1969
нико
HXK6/501/1