TNAG-0151-FCO40-187-Exports-of-cotton-textiles-to-Canada-1969 — Page 100

CONFIDENTIAL

2

A) I HAVE INFORMED JORDAN OF THE SUBSTANCE OF OUR CONVERSATION

AND PASSED ON THE MAIN INFORMATION ABOUT THE POSITION OF THE CANADIAN

INDUSTRY. JORDAN REGRETS ANY IMPLICATION THAT HE DID NOT NEGOTIATE

IN GOOD FAITH LAST YEAR AND THINKS IT LIKELY THAT A SERIES OF HASTY

ACTIONS OVER THE PAST WEEKS INDICATES THAT THE CANADIAN GOVT

RECOGNISES THAT THE SITUATION HAS BEEN FAST-MOVING. NOR DOES

JORDAN FEEL, ON THE FACTS AVAILABLE, THAT HONG KONG BEARS A MAJOR

RESPONSIBILITY AND CERTAINLY NOT FOR OVERSHIPMENT BY OTHER COUNTRIES.

NOR IS IT CLEAR THAT ACTION ALREADY TAKEN WILL NOT PROVIDE THE

CANADIAN INDUSTRY WITH A CONSIDERABLE RELIEF. AND HONG KONG WOULD

BE MOST CONCERNED IF THEIR INTERESTS WERE SACRIFICED FOR THE

JAPANESE.

(3) JORDAN ALSO REGRETS THE SUGGESTIONS OF MAJOR ACTION AGAINST HONG KONG AND I MUST TELL YOU (GREY) THAT I (GRAY) HAVE ADVISED YOU (JORDAN) THAT I INTEND TO SEE THAT THE WEIGHT AND OPINION OF

OTHER DEPARTMENTS IS BROUGHT INTO THE AFFRAY I HAVE INDEED TOLD

HONG KONG THAT I AM NOT SATISFIED THAT THE CANADIAN GOVERNMENT

POSITION WOULD BE ALL THAT STRONG HERE IF IT HAD TO EXPLAIN TO THE

PUBLIC, INCLUDING THE UNITED CHURCH, A FURTHER SERIES OF MEASURES

AGAINST POORER NATIONS WHO ARE ONLY TRYING TO SELL HERE.

(C)

NOTWITHSTANDING THIS, HONG KONG HAS ALWAYS WISHED TO ACT RESPONSIELY THOUGH WITH DUE REGARD FOR HER OWN INTEREST. THE

INFORMATION PROVIDED IS NOT CONCLUSIVE AND INDEED IT IS NOT CLEAR

THAT THE SITUATION THIS YEAR, GIVEN WHAT HAS BEEN DONE, IS SERIOUS. BUT JORDAN IS READY IMMEDIATELY, AND WITHOUT ANY PUBLICITY, TO COME TO OTTAWA TO STUDY THE POSITION WITH CANADIAN AUTHORITIES. HE WOULD

NOT BE ACCOMPANIED BY INDUSTRIAL ADVISORS, WHOM HE WOULD ONLY NEED

IF HE WERE CONTEMPLATING A NEGOTIATION.

4.

WE WILL AWAIT YOUR INSTRUCTIONS.

FCO PSE PASS IMMEDIATE TO HONG KONG (ROUTINE TO FCO).

FCO PASS COPIES OF THIS AND THE TWO IMMEDIATELY PRECEDING TELS TO MR. STEWART, BOARD OF TRADE AND DEREK JONES, UKMIS GENEVA.

SIR C CROWE

[REPEATED. AS REQUESTED]

ADVANCE COPIES SENT

INTERNATIONAL TRADE DISTRIBUTION:

COLLODITIES DEPT.

N.A.& C.D.

H.K.D.

CONFIDENTIAL