CODE 18-77
CONFIDENTIAL
Reference..
NOTE OF DISCUSSION
Kr Lam CRE1
Hr Edwards
Mr G L Simmons (FC0(TF
Mr A Stuart
Mr
CRE2
FCO (SA
32
Nicoll, UKDel.russels
r T Sharp. Washington
HKK
Mr TV Aston, Iritish Trade Commission, Hong Kong
iss Lowne CT1
Mr Gwinnell CT2
-18
HONG KONG TEXTILES
Mr Eric Ho and Mr David Sellars called yesterday at their request. Mr Ho had participated in the GATT textile discussions in Geneva on 19 January.
2 Mr Ho had spoken to Mr Jurich and r Daniels about the US attitude following the dismissal of r Stanley Kehmer. Mr Rehmer's successor, Mr Bodner, was a tough and smart operator, but he lacked Ir Rehmer's political suppleness and influence. As a result, more power in international negotiations might pass to Mr Jurich, though this was far from certain. On substance, the American textile industry remained opposed to greater flexibility in a new multilateral textile arrangement e g as regards a more selective approach, although they might accept an element of roll-in between fibres. seemed rather unlikely, therefore, that there would be much shift in the US Government's present position. They remained interested, however, in getting an all-fibre agreement as a help in possible future restraints against other Asian suppliers or Latin America (there was otherwise a risk of successful legal challenge in the United States) and for the respectability that it would confer on the arrangements already concluded with the four Asian countries.
It
3 According to r Daniels, the Japanese industry is gradually coming to recognise that a multi-fibre textile agreement is inevitable and not necessarily against Japan's interests.
4 Mr Ho had heard that the UNCTAD Secretariat was hoping to co-ordinate the position of the developing countries in discussions on a multi-fibre LTA. He agreed that the interests of these countries would not be served by opposing a new agreement outright. This would not prevent developed countries from imposing or keeping restraints and would remove the discipline of an international set of rules. I suggested
/that
1