CYPHER/CAT A

PRIORITY UK MISSION GENEVA

CONFIDENTIALY TOP COPY

TO FOREIGN AND COMMONWEALTH OFFICE

PRIORITY U.K.MISSION GENEVA TELNO. 25 TO HONG KONG 27 MAY 1970

CONFIDENTIAL [NEUTRAL]

ADDRESSED TO HONG KONG TEL NO 25 OF 27 MAY REPTD FOR INFMN TO FCO, UKDEL EEC BRUSSELS, BRUSSELS (FOR DODGE), BONN, PARIS, THE HAGUE, ROME.

FOLLOWING FROM JORDAN.

YA

COTTON TEXTILES, HONG KONG/EEC.

YOUR TEL. 13.

RECEIVED IN. KRY, No. 51,

MAY 1970

HKK6/6

I CARRIED OUT YOUR INSTRUCTIONS TODAY. RAVENNA ALSO WAS PRESENT FOR PART OF THE TIME. ERNST WAS AT HIS MOST LOQUACIOUS, CONSTANTLY INTERRUPTING AND TRYING TO PREVENT ME MAKING YOUR POINTS.

IT TOOK ME AN HOUR TO DO IT.

2.

YOUR PARA. 1. HIS LINE WAS THAT HE WAS SURPRISED WE WANTED

ANYTHING MORE BUT HE INSTRUCTED RAVENNA TO PREPARE A FORMAL REQUEST FOR NEGOTIATIONS IN BRUSSELS. HE REPEATED HIS DESIRE TO HAVE THEM IN FIRST HALF OF EITHER JUNE OR JULY. (SECOND HALF JUNE HE WILL BE IN TOKYO.) HIS ANSWER TO YOUR REQUEST FOR ASSURANCES WAS THAT HE COULD NOT FORETELL THE OUTCOME OF THE NEGOTIATIONS BEFORE THEY STARTED, 1.E. HE REGARDS COVERAGE, GROWTH AND BASE AS MATTERS FOR

NEGOTIATION.

3. YOUR PARA. 2. (A)

(A) WHEN I SAID WE SHOULD WANT STATISTICS AND OTHER DATA TO JUSTIFY RESTRAINTS, HE SAID HE HAD TOLD JONES AND DORWARD HE WAS PREPARED TO TAKE OUR STATISTICS. WHEN I REFERRED TO PRODUCTION AND CONSUMPTION STATISTICS AND THE NEED TO STUDY THEM BEFOREHAND, FOR JUSTIFICATION OF RESTRAINT BOTH GENERALLY, AND IN RELATION TO PROPOSALS FOR SPECIFIC LIMITS, IF NEGOTIATIONS THEMSELVES WERE NOT TO RE UNDULLY PROLONGED, HE SAID QUOTE YOU ARE THE MOST

CONFIDENTIAL

/DIFFICULT

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