A.
Repeated. For
DRAFT TELEGRAU To: Governor, Hong Kong.
information to Ottawa.
Confidential
Neutral
Your telegram No. 603.
Canadian Textile Mogotiations
2. We do not wish to comment on cotton textile items
(paragraphu 2(a), (b) and (c) of your telegram).
3. However, with regard to the non-cotton items (your paragraphs 2(a) and 3), we are disturbed to find how far matters seem to have gone. We havo not disregarded telegrams referred to in your paragraph 4 and we cortainly appreciate problems raised in your paragraph 5. Those problems wero âiscussed with Jordan here in June, when we thought it was made clear that we expected to be consulted in advance of any negotiations. As you know particularly in present cir- cumstances any extension of M.M.F. restrictions raises problems for us (see in this connection Board of Trade paper on textile problems sent under cover of Hughes' letter of
31 July to Jordan.
4.. We have only just received from Hong Kong Government Office the statistics attached to Jordan'a report of his recent talka in Ottawa. Those do not appear to add greatly to information provided in Ottawa tolegram No. 58. But we are urgently considering them and will let you have our comments as quickly as possible. We fear that we shall not be able to reach Firm views on what should be done in timo for your talko with Canadians this month. For 18/19 August therefore wo must ouggoot that your line should bo to probo the Canadian position yet more fully with particular refor- once to following pointo:-.
(a) oxtent of injury to domestic industry;
(b) which countrics are causing the damage;
(c)
to what extent restraints are already imposed and at what levels;
(a) Turthor details of maximum levels of restraint
which Canadians would find acceptable.
/5. On
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