TNAG-0151-FCO40-187-Exports-of-cotton-textiles-to-Canada-1969 — Page 4

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CYPHER/CAT A

PRIORITY OTTAWA

TELNO. 772

CONFIDENTIAL

NEUTRAL

CONFIDENTIAL

TO FOREIGN AND COMMONWEALTH OFFICE

9 AUGUST 1969

YOUR TELEGRAM NO. 513 TO HONG KONG.

HONG KONG/CANADIAN TEXTILE NEGOTIATIONS.

AS YOU WILL HAVE SEEN FROM OUR TELEGRAM NO. 87 TO HONG KONG OF 1 AUGUST, WHICH WAS COPIED TO YOU, WE HAVE IN FACT ALREADY WARNED THE CANADIANS THAT THE DATES OF THE NEGOTIATIONS WITH HONG

KONG MIGHT BE AFFECTED BY THE NEED FOR CONSULTATIONS BETWEEN THE

HONG KONG AUTHORITIES AND LONDON. NEVERTHELESS, NOW THAT A DATE HAS FINALLY BEEN FIXED FOR THE NEGOTIATIONS WITH HONG KONG AFTER CONS-

IDERABLE DIFFICULTY (TO WHICH CANADIAN ERRORS IN COMMUNICATIONS ADMITTEDLY CONTRIBUTED) WE WOULD EXPECT THE CANADIANS TO REACT

STRONGLY TO THE LINE SUGGESTED IN PARAGRAPH 4 OF YOUR TELEGRAM

NO. 513 TO HONG KONG NOTABLY THE IMPLICATION THAT AT THE NEGOT-

IATIONS ON 18/19 AUGUST THERE WILL BE NO FINAL AGREEMENT ON THE

QUESTION OF POLYESTER/POLYNOSIC SHIRTS. AS YOU ARE AWARE THE

CANADIANS HAVE BEEN PRESSING THE HONG KONG AUTHORITIES VERY HARD

ON THIS ISSUE FOR SOME MONTHS. WE AGREE WITH THE VIEW EXPRESSED

IN PARAGRAPH 5 OF HONG KONG TELEGRAM NO. 633 TO YOU THAT IF THEY

DO NOT SOON GET SATISFACTION FROM HONG KONG ON THIS CATEGORY OF

SHIRTS THEY MAY INDEED BE TEMPTED TO IMPOSE A SURCHARGE ON THEM.

AGAINST THIS VIEW IS THE FACT THAT PRESSURE ON THE CANADIAN AUTH-

ORITIES WILL TO SOME EXTENT BE EASED BY THE FACT THAT PARLIAMENT

IS NOT SITTING AND THE NEWSPAPERS ARE ONLY NOW CONCERNED WITH

THE PLIGHT OF THE WHEAT PRODUCERS..

../AT

CONFIDENTIAL

RECEIVED IN REGISTRY No.51) 11 AUG 1969

HKK4/231/1

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