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3.
WE SHOULD BE GRATEFUL IF YOU COULD TRY TO FIND OUT WHETHER THERE IS ANYTHING IN THE ABOVE, AND IN PARTICULAR WHETHER AND
IF SO WHEN IT IS INTENDED TO SEND A MISSION TO HONG KONG.
WE OURSELVES MAY HAVE TO SEND A DELEGATION TO OTTAWA EARLY NEXT MONTH TO DISCUSS OUTSTANDING TEXTILE PROBLEMS WITH THE CANADIANS AND WERE CONSIDERING SENDING THE TEAM ON TO WASHINGTON AFTERWARDS TO CONDUCT THE ANNUAL REVIEW OF THE COTTON BILATERAL. WE WOULD CERTAINLY NOT WISH TO BE COMMITTED TO ANY SUBSTANTIVE TALKS ON THE NON-COTTON PROBLEM ON THAT OCCASION AND NEITHER, FOR THAT MATTER, WOULD WE WISH TO HAVE OUR LIMITED MANPOWER DISPERSED IF. THE AMERICANS ARE COMING TO HONG KONG AT ABOUT THAT TIME.
4. TO REVERT TO RIDLEY'S LETTER THE QUOTE AGREED PROCEDURE DEVISED THROUGH GATT WHICH COULD BE APPLIED TO INDIVIDUAL COUNTRIES
AID INDIVIDUAL PRODUCTS UNQUOTE IS BEGINNING TO GET VERY CLOSE TO THE C.T.A. ITSELF, EXCEPT OF COURSE THAT THE C.T.A. ALLOWS AN IMPORTING COUNTRY IN THE LAST RESORT TO HAVE THE FINAL SAY. IF THE AMERICANS COULD BE PERSUADED TO AGREE TO ADAPT THE C.T.A. TO PROVIDE FOR QUOTE A STRICT REPORTING AND SCRUTINY SYSTEM IN GATT UNQUOTE AND QUOTE TO DEMONSTRATE AND JUSTIFY THEIR CLAIMS OF INJURY UNQUOTE (WHICH WE DOUBT) THERE WOULD BE LITTLE DIFFERENCE BETWEEN THESE PROPOSALS AND AN EXTENSION OF THE C.T.A. IN THIS CONN- ECTION THE JAPANESE CONSUL HERE HAS SAID THAT HIS AUTHORITIES NOW BELIEVED THAT THE US. WOULD MAKE THEIR MAIN EFFORT AT THE COTTON TEXTILES COMMITTEE IN GENEVA AND THAT THEY WOULD THERE SEEK TO BROADEN THE COVERAGE OF THE C.T.A. BY CALLING FOR A REVISED INTERPRETATION OF ARTICLES 6(B) AND 9 OF THE ARRANGEMENT.
5.
FINALLY OUR KOREAN SOURCE ALSO INDICATED THAT STANS WAS ALLEGED TO HAVE CLAIMED IN HIS REPORT TO THE PRESIDENT THAT HONG KONG AND TAIWAN HAD AGREED TO QUOTE SIT DOWN AND TALK UNQUOTE ON VOLUNTARY RESTRAINTS ACROSS THE BOARD. WE CANNOT SPEAK FOR TAIWAN BUT, IF THIS INFORMATION IS TRUE, IT IS CERTAINLY A CLEAR (AND PROBABLY DELIBERATE) DISTORTION OF WHAT WAS SAID IN HONG
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