TNAG-0147-FCO40-183-Exports-of-textiles-to-United-States-of-America-1969 — Page 28

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AGENDA FOR IT, 1.E. THEY WOULD NOT DISCUSS THE SUBSTANCE OF ANY POSSIBLE AGREEMENT AT THIS STAGE. TSURUMI WAS BOTH EMBARRASSEHD AND ANNOYED BY THE ATTEMPTS MADE IN CONGRESS TO LINK THE TEXTILE ISSUE WITH THAT OF THE RETURN OF OKINAWA. THE JAPANESE NATURALLY WANTED TO AVOID, IF AT ALL POSSIBLE, THE TEXTILE ISSUE BEING DISCUSSED IN THE TALKS BETWEEN PRESIDENT NIXON AND THE

JAPANESE PRIME MINISTER BUT THEY RECOGNISED THAT THE PRESIDENT

MIGHT WELL RAISE THE MATTER.

THE JAPANESE ARE CLEARLY UNDER VERY CONSIDERABLE PRESSURE FROM THE AMERICANS TO MAKE A SUBSTANTIAL CONCESSION ON TEXTILES BEFORE

THE PRIME MINISTER'S VISIT. THEY ARE MOST RELUCTANT TO MOVE BUT THE JAPANESE GOVERNMENT AND MR. ( GP UNDEC) PERSONALLY HAVE STAKED THEIR REPUTATION ON ACHNEVING AND AGREEMENT ON THE RETURN OF OKINAWA TO JAPAN DURING SATO'S FORTHCOMING VISIT.

FCO PASS TO ALL.

MR. ASHE

[REPEATED AS REQUESTED]

INTERNATIONAL TRADE DISTRIBUTION

COMMOD. D.

F.E.D.

H.K.D.

AMER. D.

NEWS D.

ADVANCE COPIES SENT

CONFIDENTIAL