The Embassy Row Washington

30.11.78 1900 hrs.

Note of a meeting between DTIC and STR Washington DC at 1200 noon 30 Nov 1978

Present:

USC Ambassador R. Strauss

Ambassador M.B. Smith (STR's office)

Mr. Barraclough (State)

Mr. Murphy (STR's office)

Mr. A.N. Other (PA to STR?)

HK: Mr. D. H. Jordan

Mr. L.W.R. Mills

Mr. R.B.Crowson

Nishing 12.

Hkk bilt

HKr RECLIVED DE APG)

No

JAN 970

Office

NO. 51

keton Texan

He had

He recognisca

After the usual opening courtesies, the STR said that the political problems which the US faced on trade matters were ones which affected both him and HK equally. He did not view the present talks as negotiations. nothing to offer in any such negotiations. that HK did not either. What he wanted to do was consider

The the complex problem which both sides had to face. US needed guidance and assistance on how to solve it. He said that the political pressures on him were so intense that he could not cope with them any more without such assistance. He said HK was aware of the political climate

those pressures. in the US and the problem wis how to meet

There

The President did not know how to head off Congress. was no question that HK had acted strictly withinthe terms of the textile Agreement. The fact that everything had been done in accordance with the law only encourage i the protectionists to demand that the law be changed. There was, he said, a lack of intellectual examination f the facts of world trade today by the protectionists.

2.

The DTIC interposed the question that if the problem. was as wide as the STR had said, why was he seeking assistanc

Even if a solution could be found from HK in particular? with IK, it would not really relieve the pressures because concessions by HK alon would be insufficient to contain

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