TNAG-0151-FCO40-187-Exports-of-cotton-textiles-to-Canada-1969 — Page 97

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3. JONES SUGGESTED TO CANADIANS THAT THEY SHOULD COME TO HONG KONG IN JULY FOR CONSULTATIONS ON ALL OUTSTANDING TEXTILE PROBLEMS. THIS WOULD INCLUDE POLYESTER/POLYNOSIC SHIRTS ISSUE. THIS OFFER STILL HOLDS AND WE WILL BE WILLING TO RECEIVE THEM ANY TIME IN JULY (FROM

MID-JUNE WE ARE FULLY STRETCHED AS JORDAN WHO IS CURRENTLY DIRECTOR

OF COMMERCE AND INDUSTRY WILL BE IN STOCKHOLM AND OSLO AND JONES WHO

IS ACTING AS DEPUTY DIRECTOR (COMMERCIAL RELATIONS) WILL BE

NEGOTIATING COTTON TEXTILES WITH AUSTRALIANS IN HONG KONG)

JORDAN COULD, HOWEVER, RETURN TO HONG KONG FROM EUROPE VIA OTTAWA ON? ABOUT 24 JUNE FOR PRELIMINARY TALKS BUT HE WOULD NOT BE IN A POSITION

THEN TO NEGOTIATE. IN THE COURSE OF SUCH TALKS HE WOULD WISH TO

REPUDIATE SUGGESTION THAT HE DID NOT SPEAK IN GOOD FAITH ON THIS ISSUE LAST SUMMER. HE WOULD ALSO WISH TO PAY A COURTESY CALL ON

BENSON WHO CALLED ON HIM IN HONG KONG IN APRIL (SUCH A MOVE MAY SERVE TO TRUMP THREATS WHICH GREY WILL UNDOUBTEDLY TROT OUT TO

IMPOSE THE SURCHARGE).

A 4. BEFORE SUBSTANTIVE TALKS OPEN WE WILL NATURALLY WISH TO BE GIVEN

FULL STATISTICAL INFORMATION TO JUSTIFY CANADIAN CASE. A SEPARATE

TELEGRAM IS BEING SENT TO OTTAWA INDICATING THE SORT OF DATA WE

WOULD LIKE TO SEE.

5. I SUGGEST THAT COUNSELLOR (COMMERCIAL), OTTAWA SHOULD APPROACH GREY SOONEST WITH REPLY ALONG LINES OF PARA. 3 OF OTTAWA TELEGRAM 59 AS AMENDED BY ABOVE. HE MIGHT, HOWEVER, TONE DOWN (A) AND (B) OF THAT PARAGRAPH (AS THESE COULD BE COUNTER-PRODUCTIVE IN PRESENT SITUATION), WHILE MAKING IT CLEAR THAT WE REJECT THE IMPLICATION OF BAD FAITH, EARLY CANADIAN REACTIONS WOULD BE APPRECIATED.

6./IF CANADIANS

CONFIDENTIAL