Wonky Kong Dept.
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From: Counsellor for Hong Kong Commercial Affairs, Washington
To
: Director of Commerce and Industry
c.c. London, Geneva and Brussels Offices
Memorandum No. 107
OFFICE CIRCULATION ONLY
BRITISH EMBASSY, WASHINGTON, D.C.
28 August, 1969.
RESTRICTED
BY REGISTERED AIRMAIL
218
U. S. Textile Policy
In Washington telegram No. 2336 to the F.C.o.,
dated
27 August, we reported that the formal approach to Hong Kong, Korea and Taiwan which the Americans were planning to make had been postponed for at least 60 days.
2.
It is anybody's guess why the Americans decided to postpone the approach, and for that matter, at what level the approach was first decided on and then put off. It is possible that an instruction came from President Nixon himself as a result of some- thing that transpired in the recent meeting between him and President Park of Korea. (See my telegram No. 41 of 12 August.) But I think it more probable that Mr. Stans and the other activists in the Administration were persuaded by their more sensible colleagues that there was little or no hope of getting a concession, even a definite answer, from the lesser problem countrics until it became known what, if anything, had come cut of the visit of the
This mission is expected to Japanese "fact-finding mission", arrive sometime around the middle of September (the exact date has not yet been fixed as far as I know) but even if the Americans succeeded by one means or another in persuading the Japanese to agree to start negotiations, it would be unrealistic to expect the latter to say so until at least some weeks after the mission has returned home.
now
3.
Unless legislative activity starts as soon as the Congress returns after its summer holiday which does not seem likely, because Mr. Stans still talks publicly of proferring not to go for legislation, and we can probably still count on Mr. Mills to squash any quota legislation that does not come from his own office it looks as though the rest of the world can continuo to lie low
It would be and let the Japanese bear the brunt of the attack. interesting to know what threats and/or offers Mr. Stans and his It is all too easy to imagino friends are thinking up for them. the sort of package deal, including some textile restraints,which the Japanese would find it impossible to refuse, and easy tó imagine Mr. Stans and his friends being prepared to sacrifice a lot for a textile victory; but how big a price the President would pay to fulfil his textile commitment is unguesrable.,I think there is still a possibility that the Americans, while aiming their main thrust at the Japanese, will use the C.T.C. meeting in October to push internationally for an extension of the C.T.A, to all fibres. There is absolutely no sign here that they are planning to do this, hut however little chance they have of getting the proposal accepted, I should have thought it worth making. If they are turned down
If they get flat, they get credit with the industry for trying.
EIVED IN
DISTRY No.51 19 SEP 1969
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