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Registry
No. HKK 6/304/1
SECURITY CLASSIFICATION
Top Secret.
Secret.
Confidential.
Restricted.
Unclassified.
PRIVACY MARKING
.In Confidence
DRAFT
Note
To:-
Type 1 +
From
Telephone No. & Ext.
US Textile Problem
Department
313
Учей не
in
1+%.
bue Jupes
When he was in Hong Kong in May to discuss possible
measures to protect the US textile industry from compe-
tition from imports Mr. Stans, who encountered firm
opposition from the Hong Kong Government, warned that
"the dialogue would continue".
On 23 September the US Consul General formally
proposed to the Director of Commerce and Industry
negotiations for a comprehensive bilateral agreement on
man-made and wool fibre textiles. He said that this
approach had been decided "at the highest US Government
level" and rehearsed the same weak case for restraining
imports which Mr. Stans had presented.
We immediately reminded Hong Kong that major issues
of British international commercial policy were involved
and considered trying to channel the Americans into the
more correct procedure of an approach to HMG rather than
to Hong Kong. In the event we decided against this.
Hong Kong's reply to the US approach, carefully con-
certed with ourselves, was deliveredon 8 October. After
some statistical rebuttal of the American case it re-
called that Hong Kong had no comprehensive bilateral
agreement of the sort proposed with any other country
outside the context of the Cotton Textiles Arrangement
so that a new issue of principle would be involved.
Hong Kong would not therefore enter into comprehensive
/ negotiations
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