175 MEDIATE
CYPHER/CAT A
FM HONG KONG 260401Z
1254
2+7
CONFIDENTIAL
HKK 124 6160/125
2000
No n6
themes this “
2667
CONFIDENTIAL
TO IMMEDIATE F.C.O TELNO.1058 OF 26 OCTOBER,
INFO PRIORITY BRUSSELS (FOR BURGESS),
ROUTINE STOCKHOLM, OTTAWA, UKMIS GENEVA (FOR TSAO),
WASHINGTON (FOR CROWSON), HONG KONG GOVERNMENT OFFICE LONDON
YOUR TELNO.793 OF 18 OCTOBER: TEXTILES.
1. AS ANTICIPATED IN PARA.2 OF MY TELNO.1043 OF 18 OCTOBER, WE HAVE NOW RECEIVED AN OFFICIAL REQUEST FROM SWEDEN FOR CONSULTATIONS
''IN ON A NEW TEXTILES AGREEMENT. THE KEY PARAGRAPH READS: IN ORDER TO AVOID DAMAGE TO SWEDEN'S MINIMUM VIABLE PRODUCTION OF TEXTILES, THE SWEDISH GOVERNMENT FINDS IT NECESSARY TO NEGOTIATE IN THE FUTURE RESTRAINT AGREEMENTS OF A MORE COMPREHENSIVE NATURE, COVERING ALL SENSITIVE PRODUCTS. IN THE CASE OF DOMINANT SUPPLIERS, DEPARTURES FROM THE MFA WILL HAVE TO INCLUDE A REVISION OF BASE LEVELS."
?
2. WE HAVE ALSO LEARNT FROM THE CANADIANS THAT THEY HAVE IN MIND SEEKING EXTENSIVE RESTRAINTS AT LIMITS BASED ON ACTUAL 1975 (REPEAT) 1975 TRADE, 1.E AT LEVELS WHICH, IN HONG KONG'S CASE, WERE WELL BELOW THOSE OBTAINING IN NOVEMBER 1976 WHEN THE CANADIANS TOOK
THEIR CURRENT ARTICLE XIX ACTION.
MACLEHOSE
FILES HK&GD (5)
EID (E)
TRED FED
MR CORTAZZI MR MURRAY MR FRETWELL
COPIES TO:
HONG KONG GOVT OFFICE
6 GRAFTON STREET LONDON W1
CONFIDENTIAL