TNAG-0144-FCO40-180-Exports-of-textiles-to-United-States-of-America-1969 — Page 161

CONFIDENTIAL

"Talking Points" is acceptable to the FCD. If the argument

develops and especially if the Americans argue that Hong Kong

should not be regarded as a developing country, Mr. Milley

S could make reference to the general standard of living in the

Colony and the importance of international trade to a territory

which has no natural resources and whose whole development

rests on the free flow of commerce. (Paragraph 15(b) of the

ekground textiles brief refers to Hong Kong's preference

for an extension of the Long Term Arrangement if restrictions

become inevitable. we could not support them in this – sse

paragraphs 10-12 and 15 of the brief for our objections).

6. Mr. sellers of the Hong Kong Government's London Office

will be attending the plenary meetings as an observer.

American selling Price (A.§.P.) (Brier No. 5).

7. The background is given in paragraphs 1-3 of the brief.

Mr. Mulley could stress the general political importance of

bringing fully into effect the Kennedy sound agreements which

had shown that the major industrial countries were willing and

able to work together to remove barriers to trade. An early

move by the new U.S. Administration to take action on A.S.P.

would be a valuable demonstration of their commitment to freer

trade and have an important paychological impact quite apart

from its economic effects.

Non-tariff Barriers

8. The new Administration is expected to press strongly for

the elimination of non-tariff barriers to American experts.

They appear to believe that other countries benefit more from

/the

CONFIDENTIAL