TNAG-0143-FCO40-179-Exports-of-textiles-to-United-States-of-America-1969 — Page 121

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Mr. Carter

Sir Arthur Galsworthy has asked how we stand with the matters raised in the Hong Kong telegram at (31).

2.

Hong Kong is indeed concerned with the threat that the new U.S. Administration will in one way or another make good President Nixon's pre-election promise to protect their domestic textile industry. Sir Arthur Galsworthy may care to see your letter at (26) with which you sent Mr. Moreton a copy of the Board of Trade brief on U.S. Textile Restraints prepared for the President's visit. We do not know how the discussions have gone and until we do we shall not be able to give Hong Kong much information. For the present they know that our line for the talks with President Nixon was as robust as they would wish it to be.

3. I am afraid that by a mistake over the distribution of telegrams, Hong Kong had not received by the time they sent (31) copies of all the relevant telegrams. But they have now (see (32)) and with Commodities Department, Trade Policy and the Board of Trade we are agreeing a further telegram, at this stage in draft below (33), to send to them on this subject. That telegram is largely a rehash of the guidance to Paris at (27A).

4. I may say that there seems to be a basic difference of view at this stage between Washington and at least some persons in the Board of Trade. Washington are less optimistic and believe that at the least the Americans will insist on voluntary quotas to avoid the otherwise inevitable alternative of quota legislation by Congress.

Many Thanks.

ANE

3/27/69

Kuruv

(H. H. Stewart) 26 February 1969

Sui

A.

Shalimatly

Plse

See

The above

The

minute. The Felgram below (33) has isined

ommion have been repaired;

;

and

The

Shortly they should receive the report in talks with Nr. Nixon that will be sent to Washington in to Washington tel.

reply

No 596 (not on file yet). L.s. Carter

27/2/69.