CONFIDENTIAL
Reference..
3.
away with it.
Furthermore, it is by no
means clear that if such action were taken
against Hong Kong we would be in any
position, or indeed willing, to take
effective action to protect Hong Kong's
interests.
(10) Moreover, is it really in our interests
to risk alienating the Canadians at a time
when we are expecting to have to have
discussions with them about our proposed
tariff on cotton textiles which has already
upset the Canadian authorities?
(11) Even though we would be seen to be
responsible for the delaying tactics,
this would inevitably also impose strains
on the good relations which have hitherto
existed between Hong Kong and Canada
on textile matters.
(12) Apart from the proposed restraint on
Polyester/Polynosic shirts all that is
involved in the present case is an
extension of an existing restraint.
The proposal to include Polyester/Polynosic
shirts in the restraint arrangements
springs from the fact that this is a
new line of exports from Hong Kong of an
item which is virtually indistinguishable
from the items which are already subject
to restraint.
(13) In these circumstances no new principle
of voluntary restraint would be conceded
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