CYLHER/CAT A
TELNO. 59
IMMEDIATE OTTAWA
CONFIDENTIAL
CONFIDENTIAL
TO HONG KONG
1 JUNE 1969
Action
ROB
as noted.
4/10/6/69
ADDSD TO HONG KONG TELNO. 59 OF 1 JUNE 1969 REPTD FOR INFMN TO
F CO.
23
MY TWO I.P.T'S : SHIRTS.
FOR JORDAN FROM GRAY.
YOU CAN TAKE IT THAT THE CANADIAN GOVT IS UNDER HEAVY POLITICAL
THE PRESSURE. WITH, AS WE ARE TOLD, 26 BRANCH PLANTS CLOSED, PROSPECT OF FURTHER CLOSURES IS UNWELCOME. ALTHOUGH THE MAIN PLANTS ARE IN PROSPEROUS SOUTH WESTERN ONTARIO THE PRINCIPAL CAUSE FOR CONCERN IS THE SMALL PLANTS IN RURAL QUEBEC ALONG THE ST. LAWRENCE WHERE THERE IS LITTLE OR NO ALTERNATIVE EMPLOYMENT. OTTAWA'S ABILITY TO PROTECT THESE PLANTS WILL GENERALLY BE SEEN AS IMPORTANT HERE IN THE INTERESTS OF CANADIAN UNITY AND TO AVOID THE RISK THAT SEPARATIST ELEMENTS IN QUEBEC WILL USE THE SITUATION FOR
THEIR OWN ENDS.
2. AS AGAINST THIS I DOUBT WHETHER CANADIAN DEPARTMENTS HAVE EVOLVED A CLEAR POLICY. THERE WILL CERTAINLY BE VOICES ON THE OTHER SIDE ESPECIALLY IN THE DEPT OF INDUSTRY, TRADE AND COMMERCE WHO WILL
HAS BE NERVOUS ABOUT EXTREME ACTION. THE MINISTER, MR. PEPIN, RECENTLY RETURNED FROM ASIA AND IS SAID TO BE DISSATISFIED WITH CANADIAN TEXTILE POLICY (IF THAT WORD IS APPROPRIATE) AND HAS ORDERED A REVIEW, INCLUDING, WE BELIEVE, COMPLETION OF THE INDUSTRY SIDE'S ASSESSMENT OF WHICH PARTS OF THE CANADIAN INDUSTRY ARE VIABLE IN THE LONGER TERM. THE INDUSTRY SIDE IS PERHAPS LESS INFLUENTIAL AS A RESULT OF THE AMALGAMATION BUT, FOR THE SAME REASON, THE TRADE SIDE IS ALSO PERHAPS LESS SINGLE-MINDED IN ITS OBJECTIVES AND THE TRADITIONAL DEPT OF FINANCE BALANCING ACT MAY ACCORDINGLY, IN THE FACE OF IMMEDIATE POLITICAL THREATS, REMAIN DECISIVE.
3.
YOU ARE ENTITLED TO A RECOMMENDATION ON WHAT YOU SHOULD DO AND I SUGGEST (ACKNOWLEDGING MY LESS THAN COMPLETE UNDERSTANDING OF ALL THE FACTORS THAT WILL BE IN YOUR MIND) THAT YOU AUTHORIZE ME TO SPEAK TO FINANCE ON THESE LINES (WITCH I HOPE ARE SELF-EXPLANATORY): - / (A) I HAVE ....
LAS
RE:
REX.
F F
(2x
REGISTRY N2.51
CONFIDENTIAL-3 JUN 1969
WKX6/331/1
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