TNAG-0146-FCO40-182-Exports-of-textiles-to-United-States-of-America-1969 — Page 54

CONFIDENTIAL

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SPOKEN TO MARTIN) OUT OF FOUR COUNTRIES HAVE RESPONDED TO THE QUOTE COMPREHENSIVE BILATERAL UNQUOTE APPROACH AND STANS DOES NOT APPEAR YET TO HAVE GIVEN UP HOPE OF SUCCESS WITH THE JAPANESE, (SEE PARA. 4 BELOW) IT WOULD BE VERY DIFFICULT TO MAKE ANY PROGRESS WITH THE STRATEGY OF GUIDING STANS TOWARDS THE SELECTIVE APPROACH

WHICH HE HAS SO FAR CATEGORICALLY REJECTED.

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JAPANESE CONSUL HAS JUST INFORMED US THAT U.S. GOVERNMENT MADE FORMAL REQUEST ON 2 OCTOBER THROUGH WASHINGTON EMBASSY FOR NEGOTIATIONS ON A COMPREHENSIVE BILATERAL COVERING MMF AND

WOOL. EMBASSY HAD RECEIVED REQUEST WITHOUT COMMITMENT. CONSUL DID NOT KNOW WHETHER REQUEST HAD BEEN MADE IN WRITING, NOR WHAT

RESPONSE WOULD BE MADE.

5. HE ALSO TOLD US TO DISCOUNT REPORTS THAT JAPAN WOULD TRADE TEXTILE RESTRICTIONS FOR OKINAWA: JAPANESE GOVERNMENT HAD NOT

YET DECIDED ITS POLICY ON OKINAWA.

FCO PLEASE PASS ROUTINE WASHINGTON, UKMIS GENEVA AND HONG KONG GOVERNMENT LONDON OFFICE.

SIR D. TRENCH

REPEATED AS REQUESTED TO WASHINGTON

AND UKMIS GENEVA/

INTERNATIONALTRADE DISTRIBUTION

H.K.D.

CONFIDENTIAL

ADVANCE COPIES SENT

COPY TO:

HONG KONG GOVERNMENT OFFICE,

54 PALL MALL