TNAG-0146-FCO40-182-Exports-of-textiles-to-United-States-of-America-1969 — Page 108

CYPHER/CAT A

CONFIDENTIAL

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220

PRIORITY WASHINGTON

TELEGRAM NUMBER 2556

CONFIDENTIAL. [NEUTRAL]

TO FOREIGN AND COMMONWEALTH OFFICE

19 SEPTEMBER 1969

ADDRESSED TO FCO TEL NO 2556 OF 19/9 REPEATED FOR INFORMATION TO

HONGKONG OTTAWA TOKYO UKMIS GENEVA UKDEL BRUSSELS.

(FCO GENEVA AND BRUSSELS PLEASE PASS TO HONGKONG GOVERNMENT OFFICES.

OTTAWA PLEASE PASS TO HUGHES AND CAREY OF BOT).

U.S. TEXTILE POLICY.

TALKS BETWEEN U.S. OFFICIALS AND A JAPANESE QUOTE FACT-FINDING

MISSION UNQUOTE CONCLUDED THIS AFTERNOON. THE AMERICANS MADE A

LENGTHY BUT UNCONVINCING STATEMENT OF THE PLIGHT OF THE U.S.

TEXTILE INDUSTRY SUPPORTED AS USUAL BY GENERALITIES AND UNATTRIB- UTABLE STATISTICS, WHICH ONCE MORE REVEALED THE WEAKNESS OF THEIR

ECONOMIC CASE. THE JAPANESE RIPOSTED WITH A LIST OF QUESTIONS WHICH THE AMERICANS WERE UNABLE TO ANSWER (THOUGH THE STATE DEPART- MENT HAVE CLAIMED TO ME THAT THEY DID) AND WITH DATA, COMPLILED

FROM U.S. GOVERNMENT PUBLICATIONS, SHOWING THE CONTINUING

PROSPERITY OF THE U.S. INDUSTRY.

AT THE LAST SESSION TODAY THE AMERICANS AGAIN SET OUT THEIR

IDEA FOR A COMPREHENSIVE BILATERAL AGREEMENT. THE JAPANESE

MAINTAINED THAT THEY WERE ONLY AUTHORISED TO DISCUSS FACTS.

2. NO FURTHER MEETINGS WERE ARRANGED.

3. THE JAPANESE TEAM HAVE BEEN EXPOSED SOCIALLY TO MEMBERS OF THE U.S. TEXTILE INDUSTRY AND LABOUR UNIONS (THOUGH THEY REJECTED A U.S. PROPOSAL TO INCLUDE THESE IN THE MEETINGS) AND THEY ARE

RELUCTANTLY CALLING ON CHAIRMAN MILLS OF THE WAYS AND MEANS COMMITTEE BEFORE LEAVING. BUT (SUBJECT TO ANY LAST-MINUTE SURPRISE) IT APPEARS THAT THE AMERICANS HAVE NOT SUCCEEDED, AT THIS STAGE, IN

WEAKENING JAPANESE RESISTANCE EITHER BY MORE COGENT ARGUMENT OR BY

ANY NEW THREAT OR PROPOSAL.

4. THERE SEEMS NO REASON TO CHANGE OUR POLICY OF LYING LOW AND LEAVING THE AMERICANS TO FIND THEIR OWN SOLUTIONS.

FCO PLEASE PASS HONGKONG TOKYO UKMISSION GENEVA AND UKDEL BRUSSELS.

MR FREEMAN.

INTERNATIONAL TRADE DISTRIBUTION

COMMODITIES (DEPT

H.K. DEPT.· ́

[REPEATED AS REQUESTED]

COPIED TO:

HONG KONG GOVT.

PRECEIVED IN

REGISTRY No.51

22 SEP 1969

OFFICES

54 PALL MALL, S.W.1.

FFFFF

HICK 6/304/1

CONFIDENTIAL