TNAG-0152-FCO40-188-Exports-of-cotton-textiles-to-Canada-1969 — Page 67

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CONFIDENTIAL

HONG KONG TELEGRAM 10.638 TO FCO.

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IN THE FINAL PARAGRAPH. (AS IN THE SWEDISH CASE, THE EXTENSION

OF RESTRAINT NOW SOUGHT BY CANADIANS WILL NOT, PROVIDED THAT

THERE IS A GOOD CASE FOR IT, WEAKEN THE ANTI-STANS FRONT.)

I CANNOT SEE THAT MERE (UNDERLINE NEXT WORD) EXTENSION OF

EXISTING POLYESTER/COTTON RESTRAINTS PLUS INCLUSION OF

POLYESTER/POLYNOSIC SHIRTS WOULD HAVE EITHER OF EFFECTS MENTIONED.

THESE SHIRTS ARE ALMOST INDISTINGUISHABLE SUBSTITUTES AND TO

CONTINUE TO LEAVE THEM OUT WOULD MAKE A NONSENSE OF THE NETWORK

OF RESTRAINTS THE CANADIANS HAVE BUILT UP.

9.

YOUR PARAGRAPH 4. THE SHORT ANSWERS TO YOUR POINTS ARE:

(A) STATISTICS PROVIDED BY CANADIANS THROUGH THE HIGH COMMISSION

SHOW DECLINE OF WOVEN SHIRT PRODUCTION (EXCLUDING WOOL) 1966-68

FROM 1.9 M. TO 1.6 M.DOZ., WITH HEAVY DECLINE IN EMPLOYMENT,

WHILE IMPORTS INCREASED FROM 771,900 TO 1,446,000 DOZEN SEMICOLON

THE

(B) DOMINION BUREAU OF STATISTICS PUBLICATION IMPORTS BY

COMMODITIES' 1966-68 SHOW THAT IT IS THE COMBINED WEIGHT OF JAPAN,

HONG KONG, TAIWAN, SOUTH KOREA, SINGAPORE AND MALAYSIA.

CANADIANS IMPOSED THE SURCHARGE ON KOREA AND MALAYSIA

AND ARE NEGOTIATING (OR ABOUT TO NEGOTIATE) WITH JAPAN, TAIWAN

AND HONG KONG. WE WERE AWARE THAT OUR EXPORTS WERE INCREASING.

LATEST INFORMATION SHOWS OUTSTANDING CONTRACTS FOR SHIPMENT BEFORE

33 SEPTEMBER OF HONG KONG POLYESTER/POLYNOSIC SHIRTS ARE OVER

81,000 DOZEN ON TOP OF APPROXIMATELY 60,300 DOZEN ALREADY SHIPPED SINCE 1 OCTOBER 1968. THE CANADIANS WILL NOT ALLOW IMPORTS TO

GO ON FLOWING AT THIS RATE WHEN HONG KONG'S RESTRAINT LIMIT

FOR POLYESTER AND POLYESTER/COTTON SHIRTS IS ONLY 75,002 DOZEN..

CONFIDENTIAL

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