TNAG-0152-FCO40-188-Exports-of-cotton-textiles-to-Canada-1969 — Page 6

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CYPHER/CAT A

IMMEDIATE HONG KONG

TELEGRAM NUMBER 639

CONFIDENTIAL

CONFIDENTIAL

PERSONAL FROM GOVERNOR FOR MONSON,

67A

TO FOREIGN AND COMMONWEALTH OFFICE

100

MY TELEGRAM 638: CANADIAN TEXTILE NEGOTIATIONS.

13 AUGUST 1969

RECEIVED IN

REGISTRY N~51

14 AUG 1969

I UNDERSTAND FROM COWPERTHWAITE AND SELLERS THAT THEY HAVE GAINED A STRONG IMPRESSION THAT DIFFICULTIES ARE BEING CAUSED IN THIS MATTER PARTLY BY A BELIEF IN LONDON THAT WHILE IN OTTAWA JORDAN DISREGARDED INSTRUCTIONS GIVEN AT MEETING ATTENDED BY SNELLING AND HUGHES. IN THE ASSUMPTION THIS IS SO, I HAVE BEEN ENQUIRING FURTHER INTO THE MATTER.

2.QUITE APART FROM THE FACT THAT, AS JORDAN EMPHASISED IN THESE TALKS, MY OFFICERS CAN TAKE (UNDERLINE NXT WRD) INSTRUCTIONS ONLY FROM ME,

1 CAN FIND NOTHING IN THE BCT RECORD OF THE MEETINGS IN JUNE

WHICH COULD BE INTERPRETED AS INSTRUCTIONS TO JORDAN OR AN AGREEMENT ON HOW HE SHOULD CONDUCT HIS TALKS IN OTTAWA.

3. MY UNDERSTANDING IS THAT JORDAN EMPHASISED IN LONDON, WITHOUT DEMUR FROM ANYONE, THAT, THE AGREEMENT REACHED ON SWEDEN MEANT THAT THE POLICY ON NON-COTTON RESTRAINTS REMAINED UNCHANGED: ALTHOUGH THIS POINT IS OMITTED IN THE BOT RECORD. HE ALSO MADE THE POINT, WHICH I HAVE MADE BEFORE, THAT THE DECISION WHETHER OR NOT RESTRAINT SHOULD BE EXERCISED IN A PARTICULAR CASE SHOULD BE DETERMINED PRINCIPALLY BY HONG KONG'S INTERESTS IN THE MATTER. SNELLING APPARENTLY WARNED HONG KONG AGAINST CONCEDING RESTRAINT AT THE EXPENSE OF ITS POSITION IN THE U.K. MARKET SEMICOLON 1.E. PRECEDENTS WITH OTHER COUNTRIES MIGHT FORCE THE U.K. TO SEEK RESTRAINT FROM HONG KONG TOO, A CONSEQUENCE WE HAVE ALWAYS BEEN PREPARED TO ACCEPT.

CONFIDENTIAL

LAT

REF.

NEXT

REF.

3858 67B

14.