TNAG-0152-FCO40-188-Exports-of-cotton-textiles-to-Canada-1969 — Page 33

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CONFIDI.....IAL

Commodities Dept.

Reference.......

HONG KONG/CANADA NEGOTIATIONS ON

NON COTTON TEXTILES

AUGUST 1969

62

(1) The talks are due to take place early next

(2)

week and at this late stage it is to be hoped

that we can avoid long and sterile arguments

on questions of principle based on hypotheses

about our future overall policy.

It must be admitted that during his talks

in Ottawa, Mr. Jordan was remiss in allowing

himself to be drawn into a quasi negotiating

position. The Hong Kong authorities should

also be in no doubt that we wish to be

given an opportunity to consider fully any

proposals for restraints on non cotton

textile exports from Hong Kong.

(3) On the other hand the Hong Kong authorities

have some justification in saying that

we have known for at least two months

what they had in mind and that we have not

demurred until now.

(4) But at this late stage there would be

little point in having an inquest on the

extent to which either the Hong Kong

authorities or we have been at fault in the

run up period, of the se talks. Something

must be decided before the weekend.

(5)

Our own policy overall is still unclear.

Admittedly since the round of talks between

Hong Kong and the Swedes in Stockholm earlier

this summer, we have announced our intention,

in the case of cotton textiles, to move

from a system of quotas to protection through