CYPHER/CAT A
PRIORITY TOKYO
TELEGRAM NUMBER 739
CONFIDENTIAL 2805557.
NEUTRAL.
CONFIDENTIAL
1001
KzM
299
TO FOREIGN AND COMMONWEALTH OFFICE
28 OCTOBER 1979
ADDRESSED TO F C O TELEGRAM NUMBER 789/OF 28 OCTOBER RFI TO WASHINGTON,
UKDEL BRUSSELS, UKAIS GENEVA AND HONG KONG.
YOUR TEL NO. 733: TRADE TALKS AND TEXTILES.
BEFORE SATO LEFT FOR THE UNITED STATES IT WAS EXPECTED THAT
AGREEMENT WOULD BE REACHED IN HIS TALKS WITH PRESIDENT NIXON ON
A RESUMPTION OF THE TEXTILE NEGOTIATIONS BUT THAT NO DECISIONS
WOULD BE TAKEN ABOUT THE BASIS ON WHICH SUCH NEGOTIATIONS MIGHT GO FORWARD. THERE HAS BEEN NO SURPRISE, THEREFORE, IN INDUSTRIAL
CIRCLES HERE ABOUT THE ACTUAL RESULTS OF SATO'S VISIT.
WM MIYAZAWA, THE MINISTER FOR INTERNATIONAL TRADE AND INDUSTRY,
TOLD A PRESS CONFERENCE ON 25 OCTOBER THAT THE NEXT ROUND OF
TALKS MUST BE BROUGHT TO A SUCCESSFUL CONCLUSION. TEXTILE
INDUSTRY LEADERS HAVE BEEN NOTICEABLY QUIET AND CAUTIOUS BUT
HAVE GENERALLY TAKEN THE SAME LINE. IN DOING SO, HOWEVER, THEY
HAVE NATURALLY SUGGESTED THAT CONCESSIONS WILL BE NEEDED FROM
THE AMERICAN SIDE AND THEY HAVE ALSO TRIED TO KEEP THEIR OPTIONS
LOPEN AS FAN AS THE TIMING OF THE RESUMPTION IS CONCERVED.
3. ALTHOUGH THE PRIME MINISTER RETURNED TO JAPAN YESTERDAY,
UEMURA, CHAIRMAN OF THE KEIDANREN, IS NOT DUE BACK UNTIL THIS
AFTERNOON. HE WAS NOT EMPOWERED BY THE JAPANESE INDUSTRY TO
NEGOTIATE IN THE U.S. ON THEIR BEHALF ON THE TEXTILE ISSUE,
BUT HE HAS SEEN A SUFFICIENTLY WIDE AND REPRESENTATIVE GROUP
OF OFFICIALS AND BUSINESSMEN THERE THAT HE WILL ALMOST CERTAINLY
HAVE VIEWS ON SUCH MATTERS FOR NEGOTIATION AS THE BASE DATE
FOR RESTRICTIONS, INJURY, THE WAY IN WHICH THE SELECTIVE SYSTEM
MIGHT WORK, AND THE DURATION OF ANY AGREEMENT. UEMURA IS EXPECTED
TO MEET LEADERS OF THE TEXTILE INDUSTRY SOON AFTER HIS RETURN.
/THIS
CONFIDENTIAL
HKKC/2007
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