TNAG-0143-FCO40-179-Exports-of-textiles-to-United-States-of-America-1969 — Page 85

CONFIDENTIAL

Biroster of Cam T

Cammerge and Industry

MEMO

AL

A

Hon. Colonial Secretary

To

From

Ref. 3) in.

CR/R38 617/9

Tel. No.

Date

28th February, 1969

Your Ref 7 MAR 1969

dated

Visit to Lores by the Director of Commerce & Industry

ماری

Please refer to corres 11th February.

ndence resting with my memorandum of

As arranged, I visited Korea from the 20th to the 25th of February. invitation vas extended in the name of Mr. Chul Sơumg ing, Vica-Kimister, 'permanent secretary", at the Ministry of Commerce and Industry. All expenses in connection with my travel and accommodation vere met by the Korean Government. The hotel expenses for the two members of my staff vbe accompanied me vere also met by the Korean Government, their air travel only being a charge on Hong Kong.

3.

In

I enclose a copy of the final programme. As you will see, in addition to the Kinistry of Commerce and Industry I also had discussions in the Ministry of Foreign Affairs and the Economic Planning Board. addition the programme called for me to visit the Korean Chamber of Commerce and Industry, the Federation of Korean Industries, the Korean Traders Association and the Korean Trade Promotion Corporation (KOTRA).

4.

With the exception of the discussions at the Ministry of Commerc and Industry, these conversations vere of a very general nature. In the discussions with the Ministry of Commerce and Industry it soon became clear that there was really only one point on which they welcomed substantive discussion • That was on the issue of possible American action in the field of textile restraints on fibres other than cotton. The Koreans clearly feel that we have a special relationship with the United States and talk half-jokingly of our "secret tactics". I stressed, of course, that our pre-eminence in the field of cotton textiles vas a reflection of the fact that we had entered the market early; that we regarded growth and flex- ibility in some ways more important than absolute volume; and that the flexibility arrangements in our bilateral agreement were the result of hard and painstaking negotiation. I formed the impression that they had a less sophisticated attitude towards the contents of textile restraint agreemen

5.

Because of this imagined special relationship, it gradually became clear that the Koreans were suspicious of what our attitude might be in the face of present American manoeuvres in the field of non-cotton textiles. There has, from time to time, been a certain amount of loose talk by some prominent textile industrialists in Hong Kong regarding the desirability of quotas on man-made fibre textiles so as to preserve our present share of the U.8. market before competition from Korean and Taivan erodes sur position. Not surprisingly perhaps, some of this had come to the ears of the Korean authorities and they were clearly concerned that we (and the Japanese) might sell the pass. Their penetration of the U.S. market, while significant in volume terms, is very limited in range of product (mainly acrylic knitwear) and of comparatively low value.

They

are anxious/

CONFIDENTIAL

}