CYPHER/CAT-A-
CONFIDENTIAL
PRIORITY FOREIGN AND COMMONWEALTH OFFICE
TELEGRAM NUMBER 434
CONFIDENTIAL.
NEUTRAL
YOUR TELNO 413: COTTON TEXTILES.
Rexhl Cuncil Silen
TO TOKYO
(11
31 JULY 1969 (MCC 13/10)
THE QUESTION OF HOW TO REPLY TO THE PROBING TO BE EXPECTED FROM THE JAPANESE ABOUT THIS SUBJECT HAS BEEN UNDER CONSIDERATION BY THE BOARD OF TRADE AND THE PRESIDENT HAS AGREED THE FOLLOWING GENERAL
GUIDANCE:
QUOTE WE HAVE TO ENTER INTO NEGOTIATIONS WITH CERTAIN COMMONWEALTH PREFERENCE AREA COUNTRIES TO CLEAR THE WAY FOR THE APPLICATION OF A TARIFF TO IMPORTS FROM C P A SOURCES. ON THE ASSUMPTION THAT THE WAY IS THUS CLEARED, THE QUOTA RESTRICTIONS IN IMPORTS FROM DEVELOPING COUNTRIES IN THE COMMONWEALTH AND CERTAIN DEVELOPING COUNTRIES OUTSIDE IT WOULD GO WITH THE INTRODUCTION OF THE TARIFF, AND WE WOULD ACCEPT THAT THE JAPANESE WOULD EXPECT THAT AT THE SAME TIME WE SHOULD RELIEVE THEM OF THEIR UNDERTAKING TO CONTROL EXPORT OF COTTON TEXTILES. WE APPRECIATE THAT ANYTHING ELSE WOULD CONSTITUTE AN EXTENSION OF DISCRIMINATION WHICH THEY WOULD NOT ACCEPT, THE END OF THESE RESTRICTIONS ON JAPANESE EXPORTS OF COTTON TEXTILES TO THE UK WOULD, HOWEVER, WHEN TAKEN ALONG WITH OTHER MOVES IN TRAIN OR ON OFFER, MEAN AN END TO ALL REMAINING RESTRICTIONS ON JAPANESE ACCESS TO THE UK MARKET, AND BRITISH MINISTERS WOULD CERTAINLY, AND REASONABLY, EXPECT THIS TO BE TAKEN INTO ACCOUNT BY THE JAPANESE GOVERNMENT IN THEIR RESPONSE TO OUR REQUESTS FOR THE REMOVAL OF OBSTACLES TO OUR EXPORTS. UNQUOTE
WE ASSUME THAT THE SUBJECT WILL BE RAISED BY THE JAPANESE IN THE TRADE TALKS, MEANWHILE YOU MAY DRAW ON THE ABOVE SHOULD THE JAPANESE AGAIN APPROACH YOU.
STEWART
INTERNATIONAL TRADE DISTRIBUTION
COMMODITIES DEPT.
GGGGG
!
CONFIDENTIAL
100
CODY TO
RECEIVED IN
REGISTRY No.51 - 5 AUG 1969
MR. HAINES
C.R.E. DIVISION. BOARD OF TRADE.
MKK6/548/8