CYPHER/CAT A
CONFIDENTIAL
265
PRIORITY TOKYOj
TELEGRAM NO 764
CONFIDENTIAL. 150559Z.
TO FOREIGN AND COMMONWEALTH OFFICE
15 OCTOBER 1970
{NEUTRAL]
ADDRESSED TO FIC O TELEGRAM NUMBER 764 OF 15 OCTOBER REPEATED
FOR INFORMATION TO WASH INGTON UKDEL EEC UKM IS GENEVA COVERNOR
HONG KONG AND HIGH COMMISSION SINGAPORE.
OUR TELEGRAM NO! 737: TEXTILES,
THERE IS GROWING DOUBT HERE WHETHER THE JAPANESE WILL BE ABLE
TO RESOLVE THEIR INTERNAL DIFFERENCES ON TEXTILES AND FIND
! AN AGREED LINE BEFORE THE SATO-NIXON MEETING ON 24 OCTOBER.
THE GOVERNMENT STILL APPEARS TO FAVOUR' AN EARLY RESUMPTION
OF TALKS, BUT IS UNWILLING TO PROCEED WITHOUT FIRST OBTA IN ING
THE AGREEMENT AND SUPPORT OF THE JAPANESE TEXTILE INDUSTRY.
THE INDUSTRY, ON THE OTHER HAND, REMAINS OPENLY INTRANS IGENT
AND TEXTILE LEADERS HAVE DECLARED THEIR OPPOSITION TO ANY
RESUMPTION OF NEGOTIATIONS UNTIL US DEMANDS ARE MODIFIED.
TO AGREE TO NEGOTIATE ON THE BASIS OF THE LONG PLAN WOULD,
THEY SAY, REPRESENT A UNILATERAL CONCESSION ON THEIR OWN
PART, WITHOUT ANYSIGN OF AMERICAN WILLINGNESS TO MAKE CONCESSIONS.
2. SPEAKING IN THE JAPANESE DIET ON TUESDAY, 13 OCTOBER,
MIYAZAWA EXPRESSED THE GOVERNMENT'S CONTINUING HOPE THAT IT
MIGHT BE POSSIBLE TO USE THE SATO-NIXON TALKS TO FIND A BASIS
FOR A SOLUTION. HOWEVER, FOLLOWING A HIGH-LEVEL MEETING OF
GOVERNMENT AND BUSINESS LEADERS YESTERDAY, HE SHOWED INCREASING
PESSIMISM, AND SAID THAT IN THE ABSENCE OF ANY SIGN OF US FLEXIBILITY, IT LOOKED AS IF IT WOULD BE VERY DIFFICULT TO
CONFIDENTIAL
NKK6/12 बार
/FIND