TNAG-0144-FCO40-180-Exports-of-textiles-to-United-States-of-America-1969 — Page 12

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2. IN THE COURSE OF GENERAL DISCUSSION HE DID NOT SAY THAT

THE UNITED STATES WOULD RESTRICT IMPORTS OF KOREAN TEXTILES.

HE SAID THAT HE HAD COME TO KOREA NOT TO NEGOTIATE, BUT TO

PUT FORWARD THE NIXON POLICY FOR FREER TRADE.

3. THE KOREAN MINISTER OF COMMERCE AND INDUSTRY, MR

KIM,CHUNG YUN, THEN MADE A GENERAL STATEMENT ON KOREA'S

ECONOMY AND INDUSTRIAL STRUCTURE, EMPHASISING THAT THE TEXTILE

INDUSTRY WAS A VITAL ONE TO KOREA. ANY IMPORT RESTRICTIONS

IMPOSED BY THE UNITED STATES AGAINST KOREAN TEXTILES WOULD

BE A VITAL BLOW TO THE REPUBLIC'S ECONOMY. IT WAS, THERE-

FORE, A MATTER OF LIFE OR DEATH TO THE REPUBLIC THAT THESE

EXPORTS OF TEXTILES TO THE UNITED STATES SHOULD INCREASE.

HE EMPHASISED THAT ANY TEXTILE RESTRICTIONS IMPOSED BY THE

UNITED STATES ON THE REPUBLIC WOULD BE SEIZED UPON BY THE

NORTH KOREANS, WHO WOULD ATTEMPT TO DRIVE A WEDGE BETWEEN

THE US AND THE REPUBLIC, BY EXPLOITING ANY ECONOMIC GRIEVA-

NCES WHICH MIGHT ARISE IN SOUTH KOREA FROM SUCH RESTRICTIONS.

4. FULL TEXT OF COMMUNIQUE AND PRESS COMMENT FOLLOW.

FCO PLEASE PASS

MR. TRENCH

INTERNATIONAL TRADE DISTRIBUTION

REPEATED AS REQUESTED_/

ADVANCE COPIES SENT

COMMODITIES DEPT.

FAR EASTERN DEPT.

H.K. DEPT.

WESTERN EUROPEAN DEPT.

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CONFIDENTIAL