-3-
allowed under the quotas;/hal
Canada has not reached gr eren
with Japan, her main supplier; that the interests
of the prairie wheat farmers in the Japanese market
may well outweigh the interests of Quebec in protection: that the tariff on polyester/cotton cloth is under review
by the ariff Board, aninly because of the difficulties
experienced by the shirt producers and that for a
number of re:song this would be a very awkward moment
for Cada t impose a ponal duty on imports.
37
6. But at the end of the day we must decide what is
It is in the best intereats of britain and Hong Kong.
clear fræ para 7 of your t 10,2a that you have been
sisinformed about was was "est blished" at ¡lughes'
Deetings in London. hav. never decided as a
matter of principle to agree to voluntary restreint on
non-textile items in any circumstances, still less did
we give outhority to Hong Kong to reach any decisions
on so important a matter. You will recall that in
1967 the aericans Lade a formal approach to the
Canadians warning them of the possible consequences
if liong Kong entered into a bilateral restraint a rec-
ment. We managed to avoid this Lurile, The fact that to the extent than it has
how
the position hus i delspiorated/is almost certainly
a unntattual
試
due to our having red tror int
in 1967 en it behoves us to look at the
position much nere carefully this time. If Hong Kong were to insist on pushing furtive along this word the night find herself faced with Lariffs and quotas on all her expôts to the U.K.
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