TNAG-0143-FCO40-179-Exports-of-textiles-to-United-States-of-America-1969 — Page 211

CONFIDENTIAL

CYPHER/CAT A

HONG KONG TO FOREIGN AND COMMONWEALTH OFFICE

HONG KONG TELNO 114 TO WASHINGTON

CONFIDENTIAL

CUTRAL]

TOP COPY

6 NOVEMBER, 1968

PA.

18TH

ADDRESSED AS MYTEL NO. 114 CF 6TH NOVEMBER TO WASHINGTON

FOR HERMANN. YOUR TELEGRAMS 78 AND 73 AND OUR 112.

•

2

G' OVES. PARA. 6 OF YOUR 83. IS NOT OTHER POSSIBILITY AS

IN PARA. 4CB) OF YOUR 58 1.E., THAT WE UNDERTAKE THAT IF

68/69 SHIPMENTS REACH TRIGGER POINT AND CONSULTATIONS ARE

HELD WE WOULD DEDUCT QUOTE OVERSHIPMENTS UNQUOTE FROM. WHATEVER LEVEL MAY BE AGREED IN CONDITIONS PREVAILING?

2.

WE SHOULD PREFER THIS. IF, HOWEVER, AMERICANS INSIST THAT THEY WANT US TO DEDUCT FROM TRIGGER POINT ITSELF, WE

ARE PREPARED TO AGREE C REDUCING TRIGGER POINT AS IN YOUR

TELEGRAM 80), BUT ONLY ON CLEAR UNDERSTANDING THAT IF

REDUCED TRIGGER POINT IS REACHED AND AMERICANS SEEK CON-

SULTATIONS, SPECIFIC LEVEL WILL BE CONSIDERED ON BASIS

SUGGESTED IN PARA. 1 OF YOUR TELEGRAM 78.

3. BEFORE CONCEDING, PLEASE MAKE CLEAR

(A) THAT WE FEEL THAT TROUBLE HAS BEEN CAUSED BY AMERICAN FAILURE TO

SEMI-COLON

Y WITH DISRUPTION CAUSED BY TAIWAN ;

(6) THAT THEIR DELAYED ACTION IS NOW

LIKELY TO CAUSE FURTHER DISRUPTION IN 68/69, AS IN PARA. 6

OF OUR TELEGRAM SEMI-COLON

(C) THAT THEREFORE ALL WE SEE A CASE FOR IS ACTION AS IN

PARA. & OF OUR TELEGRAM, AND WE REGARD DEDUCTION FROM TRIGGER

POINT AS EX-GRATIA CONCESSION.

4.

IN SHORT, AS WE SEE IT, THE ONLY REAL ARGUMENT FOR CONCESSION IS IN PARA. 5 OF YOUR TELEGRAM 78.

F.C.0. PLEASE PASS ROUTINE WASHINGTON.

SIR D. TRENCH

[REPEATED AS REQUESTED]

INTERNATIONAL TRADE DISTRIBUTION

HONG KONG DEPT

TRADE POLICY DEPT

N.A..C.D.

CONFIDENTIAL

HK

RECEIVED IN ARCHIVES No.31 - 8NOV 1968

HKX6/204/1