TNAG-0151-FCO40-187-Exports-of-cotton-textiles-to-Canada-1969 — Page 109

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این درمان

CONFIDENTIAL

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(C) POLYESTER/POLYNOSIC SHIRTS. MACPHERSON REVEALED THAT ALL LOW COST EXPORTERS RESTRAINING POLYESTER/COTTON HAD BEEN ASKED TO LIMIT P/P ALSO WITHIN TOTAL RESTRAINT LEVEL FOR P/C.

THIS WAS ABSOLUTELY VITAL.LOW COST IMPORTS HELD OVER

45 PER CENT OF CANADIAN SHIRT MARKET AND MAJOR FACTORIES MIGHT

SOON HAVE TO CLOSE. CANADIANS WOULD NOT SACRIFICE THEMSELVES FOR SAKE OF US WHO HAD NO CASE AND US GOVERNMENT HAD BEEN

TOLD THIS FLAT AT MINISTERIAL LEVEL. I REPLIED HONG KONG HAD

ALREADY PAID FOR DOING NOTHING ON THIS LAST YEAR WITH LACK OF

GROWTH AND FLEXIBILITY ON ALL P/C ITEMS. CANADIANS WOULD

HAVE TO PUT THEIR CASE AGAIN AND WE WOULD CONSULT. PENDING SUCH

CONSULTATIONS HONG KONG WOULD NOT (REPEAT NOT) LIMIT EXPORTS OF P/P. MACPHERSON SEEMED TO ACCEPT THIS POSITION.

(D) FABRICS BILATERAL. MACPHERSON TOOK POINT ABOUT LOW LEVEL

OF PERFORMANCE AND SAID THEY WOULD CONSIDER POSITION.

(E) ARTICLE 3 RESTRAINTS. HE WAS LESS SANGUINE ON GROWTH AND

FLEXIBILITY, THEY WOULD LOOK AT IT.

(F) NON-COTTONS WERE MORE DIFFICULT STILL AND THEY WOULD ASK

US TO CONSIDER WITH P/P SHIRTS.

AS REGARDS TIMING AND VENUE FOR CONSULTATIONS MACPHERSON WAS

SYMPATHETIC WITH HONG KONG'S COMMITMENTS AND STAFF PROBLEMS.

CANADIANS HAD SAME DIFFICULTIES. HE CONSIDERED IT A GOOD

IDEA TO DISCUSS ALL OUTSTANDING ISSUES, INCLUDING FUTURE OF

FABRICS BILATERAL, AT ONE PLACE AND ONE TIME. CANADIANS

MIGHT CONSIDER COMING TO HONG KONG BUT JULY WOULD PROBABLY

BE EASIER THAN JUNE. I REPLIED THAT THIS WAS LIKELY TO BE

ALL RIGHT BUT. THEY MUST ACCEPT LOGIC OF NO FURTHER ACTION

BEFORE THEN. YOU MIGHT ALSO HAVE VIEWS ON CONTINUED SUSPENSION OF E/A S ON TRIGGER POINT ITEMS.

5. AS MACPHERSON WILL PROBABLY STILL BE HERE NEXT WEEK YOUR COMMENTS, ESPECIALLY ON PARAGRAPH 4, WOULD BE WELCOME.

FCO PASS HONG KONG PRIORITY AND ROUTINE TO OTTAWA.

SIR E. KELVILLE

[REPEATED AS REQUESTED]

INTERNATIONAL TRADE DISTRIBUTION

HONG KONG DEPT.

N.A. & C. D.

COMMODITIES DEPT.

TRADE POLICY DEPT. FAR EASTERN DEPT.

AAAAA

CONFIDENTIAL