CONFIDENTIAL
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FIND ANY MUTUALLY ACCEPTABLE PROPOSAL IN TIME FOR THE MEETING
ON 24 OCTOBER, THE NIHON KEIZAI SHIMBUN HAS GONE AS FAR AS
TO REPORT THAT THE JAPANESE MINISTRY OF FOREIGN AFFAIRS IS
NOW CONSIDERING ASKING THE US TO DROP THE TEXTILE ISSUE FROM
THE AGENDA FOR THE TALKS.
3. THE JAPANESE GOVERNMENT HAS BEEN GIVING CONSIDERATION TO
WAYS OF ASSISTING THE DOMESTIC TEXTILE INDUSTRY IF RESTRICTIONS
ARE IMPOSED ON EXPORTS TO THE UNITED STATES. NO OFFICIAL
ANNOUNCEMENT OF POSSIBLE MEASURES HAS BEEN MADE, BUT PRESS REPORTS
HAVE MENTIONED GOVERNMENT PURCHASING OF SURPLUS TEXTILE
PRODUCTION, AS WELL AS DIRECT FINANCIAL ASSISTANCE. THESE
SUGGESTIONS ARE CLEARLY BEING LEAKED IN AN EFFORT TO BRING
THE INDUSTRY ROUND TO AGREEING TO A SETTLEMENT, ALTHOUGH
TEXTILE LEADERS HAVE REACTED SUSPICIOUSLY TO THEM, DECLARING
THAT, IN THE ABSENCE OF ANY AGREEMENT TO RESTRICT EXPORTS,
IT IS NOT OPPORTUNE TO CONSIDER SUCH MEASURES.
F C O PASS ALL BUT SINGAPORE.
MR. ASHE
REPEATED AS REQUESTED]
INTERNATIONAL TRADE DISTRIBUTION
COMMODITIES DEPT.
H.K. DEPT.
F.E.D.
T.P.D.
E.I.D.
E.C.I.U.
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CONFIDENTIAL
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