CONFIDENTIAL
Action Taken to
inform Hong Kong
File
Country
By Originator
Refs
Germany
84 (A) B (No. 444) 17/4/69
Saving to Hong Kong
84 B (No. 454 21/4/ 69
Saving to Hong Kong
By F.C.O.
CONFIDENTIAL
REMARKS
Stans meeting with Secretary Dohnanyi/ Dohnanyi told Stans that Germans were trying to solve similar problems by different methods - not by restrictive Trade Practices. Rejected US proposals on 3 grounds: 1) It would create a dangerous precedent (following Steel) 2) Need to avoid USA/Europe confronta- tion with Asia,"One World" concept.3) Impractibility of operating voluntary restraints in Textile sector, as if with Steel. But Dohnanyi suggested a GATT fact-finding group to examine difficulties in whole Textile field. US rejected this suggestion as "it would lead to no useful result and would take too long"..."it doesn't serve our purpose." Agreed that meet- ing had been useful and should be followed up bilaterally.
Additional information on US visit, obtained from Economics Ministry US reludant to provide figures to support their assertions about their industries difficulties. "At the Stans level political motivation very clear." Also Germans suspicious that Stans visit has an objective to obtain a European
reception for US ideas Mavoubable enough to strengthen the US hand in bargaining bilateral queta arrangements with Asians.
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