EN CLAIR

TOKYO

TO

TELNO 156

UNCLASSIFIED /NEUTRAL/

FOREIGN AND COMMONWEALTH OFFICE

5 MARCH 1970

35

ADDSD TO F C O TEL NO 156 OF 5 MARCH 1970 RFI TO

WASHINGTON

тра

нико

opoul

7

UKDEL GENEVA, HONG KONG, SEOUL AND SAVING

TEXTILES. THE DEBATE IN JAP AN

TAM SUI. MY TEL NO 142.

HAS BEEN CONTINUING. THE TEXTILE INDUSTRY LOBBY, WITH

CONSIDERABLE PARLIAMENTARY SUPPORT, INCLUDING SOME

EIGHTY MEMBERS OF THE GOVERNMENT PARTY, HAVE CONTINUED

TO OPPOSE ANY VOLUNTARY CONTROL ON EXPORTS OF TEXTILES

TO THE US MARKET. HOWEVER, THE JAPANESE PRIME MINISTER

IN THE DIET HAS INDICATED THE NEED FOR SOME FORM OF

CONMPROMISE AND THE PRESS REPORTS THAT OFFICIAL DISCUSSIONS

WITH YOSHINO, MINISTER IN THE US EMBASSY IN WASHINGTON

WHO HAS BEEN IN TOKYO FOR CONSULTATIONS, HAVE CONCENTRATED ON

A POSSIBLE JAPANESE COUNTER PROPOSAL.

2. THE LATEST INDICATIONS ARE THAT A JAPANESE COUNTER PROPOSAL

MAY TAKE THE FORM OF A REQUEST TO THE UNITED STATES FOR

MORE INFORMATION ABOUT INJURY OR THREAT OF INJURY, NOT

OVER THE WHOLE RANGE OF 28 ITEMS LISTED BY THE US SIDE,

BUT CONFINED TO THOSE IN WHICH JAPAN'S SHARE OF US IMPORTS

IS HIGH AND IN WHICH IMPORTS FROM JAPAN HAVE INCREASED

PARTICULARLY FAST (OVER 50 PERCENT IN 1969 AS COMPARED

TO 1968).

ITEMS MENTIONED AS FALLING SPECIFICALLY IN THESE CATEGORIES

ARE KNITTED SUITS, MENS AND CHILDRENS SWEATERS, WOMENS

AND CHILDRENS SWEATERS AND BLOUSES MADE OF WOVEN FABRICS.

THERE ARE SAID TO BE SOME OTHERS WHICH MIGHT COME NEARLY INTO THESE CATEGORIES. HOWEVER, THE GOVERNMENT WOULD APPARENTLY ONLY CONSIDER THEM AS ITEMS CAUSING INJURY OR THREAT

OF INJURY IF PRODUCTION, EMPLOYMENT AND PROFIT IN THE US INDUSTRIES

CONCERNED HAD FALLEN.

13. OFFICIAL

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