IMMEDIATE

CYPHER/CAT Å

FM FC0 161820Z

CONFIDENTIAL

NEUTRAL

CONFIDENTIAL

(MC)

RECEIVED IN

REGISTRY No, 51

17

pe.

18 MAR 1971

Kirs

HKR 6/548/3

TC IMMEDIATE WASHINGTON TELNO 769 OF 16/3 INFO TOKYO, HONG KONG,

UKDEL BRUSSELS, UKMIS GENEVA

*

YOUR TELEGRAM NO.912: US/JAPAN TEXTILES.

1. TREZISE AND CLEVELAND TOLD LAM AND BOTTOMLEY ON 12 MARCH

THAT THEY HAD TELEPHONED KATZ THAT DAY INSTRUCTING HIM TO CALL

IN TEBBITT TO CALL ON HONG KONG TO OPEN NEGOTIATIONS ON RESTRAINTS ON THEIR TEXTILE EXPORTS TO THE US. WE REMONSTRATED THAT IN THE

CIRCUMSTANCES SUCH A REQUEST WOULD BE PLACING HONG KONG IN AN

IMPOSSIELY DIFFICULT SITUATION VIS-A-VIS THOSE WHO SUPPORTED THE

PRESIDENT'S POSITION AND THOSE WHO SUPPORTED THAT OF CONGRESSMAN

MILLS.

2. WHATEVER THE OUTCOME OF THE DEBATE IN WASHINGTON, WE CONSIDER THAT THE PROS AND CONS OF ACTION BY OURSELVES OR BY HONG KONG AT

THE PRESENT TIME NEED TO BE VERY CAREFULLY THOUGHT OUT. WE THEREFORE WISH YOU TO TAKE NO INITIATIVE ON TEXTILES FOR THE MOMENT. IF YOU ARE APPROACHED, PLEASE UNDERTAKE TO REPORT WHAT IS SAID BUT AVOID GETTING DRAWN INTO DISCUSSION OF SUBSTANCE. SIMILARLY

WE HOPE THAT HONG KONG WOULD REPORT ANY APPROACH FROM THE US

CONSUL-GENERAL.

3. AS REGARDS UKDEL BRUSSELS TELEGRAM NO.72 WE SUGGEST CHRISTOFAS SHOULD RESTRICT HIS COMMENTS TO HIJZEN TO SAYING THAT WE ARE TREADING VERY CAREFULLY IN THIS POTENTIALLY DIFFICULT SITUATION, SINCE THE DISPUTE IN WASHINGTON SEEMS TO US TO BE ONE OF MAJOR PROPORTIONS SPREADING WELL OUTSIDE THE TEXTILE ISSUE. WE HOPE

THAT HIJZEN TUKES A SIMILAR VIEW.

DOUGLAS-HOME

INTERNATIONAL TRADE DISTRIBUTION

COMMODITIES D.

NNNNN

CONFIDENTIAL

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