CYPHER/CAT A
PRIORITY UKMIS GENEVA
CONFIDENTIAL
PRIORITY UKMIS GENEVA TEL NO.21
CONFIDENTIAL.
[NEUTRAL]
TO FOREIGN AND COMMONWEALTH OFFICE
TO HONG KONG, 21 MAY 1970
ADDSD TO HONG KONG TEL NO 21 OF 21 MAY REPTD FOR INFMN TO F C O
AND WASHINGTON.
FOLLOWING FROM JORDAN.
U.S. COTTON TEXTILES.
RECEIVED IN
REGISTRY No. 45
26 MAY 1970
SI AC1
H K K 6/16
I HAVE NOT YET BEEN ABLE TO EXTRACT ANY QUOTE SPECIFIC
INDICATIONS UNQUOTE FROM THE U.S. SIDE. IT BECAME CLEAR TODAY
THAT THIS WAS BECAUSE THEY HAD TO CONSULT ADVISERS WHO HAD NOT YET ARRIVED. THEY HOPE, REPEAT HOPE, TO GIVE INDICATIONS THIS AFTERNOON.
ة
2. I HAVE INDICATED AND WILL EMPHASISE THAT THIS DELAY WILL MAKE IT DIFFICULT FOR HONG KONG TO REACH ANY DECISION BEFORE C T C MEETS.
3. AT OUR FIRST MEETING THE U.S. TEAM SAID THEY WANTED A FIVE- YEAR AGREEMENT, THAT THEY WOULD IN C T C NEXT WEEK SEEK TO HAVE THE C T A EXTENDED FOR FIVE YEARS, AND THAT THEY HAD FIRM SUPPORT OF SOME OTHER PARTICIPATING COUNTRIES.
4. THEY ALSO INDICATED THAT THEY WOULD BE IN A POSITION TO OFFER BETTER TERMS FOR A 5-YEAR AGREEMENT THAN FOR THREE YEARS. HOWEVER, SUCH VAGUE INDICATIONS AS THEY HAVE GIVEN DO NOT LEAD US TO EXPECT THAT THEY WILL OFFER MUCH EITHER WAY.
5. ALTHOUGH WE CANNOT YET ASSESS THE COMMERCIAL VALUE OF THE TWO POSSIBILITIES, YOU MAY WISH TO GIVE SOME THOUGHT TO THE DOCTRINAL ASPECTS IN ADVANCE. I WILL REPORT THE DETAILS OF U.S. OFFERS AS SOON AS POSSIBLE.
6. ALTHOUGH I COULD SAY THAT OUR FINAL REPLY TO THE U.S. OFFER WILL DEPEND UPON THE C T C'S DECISION ON THE TERM OF EXTENSION OF CTA, I EXPECT THAT I SHALL BE PRESSED FOR A CLEAR INDICATION OF YOUR ATTITUDE TO THE 5-YEAR EXTENSION PROPOSAL. IT MAY NOT BE IN OUR INTERESTS TO HEDGE.
CONFIDENTIAL