TNAG-0153-FCO40-189-Exports-of-cotton-textiles-to-Canada-1969 — Page 115

CONFIDENTIAL

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IT SEEMS TO ME THAT THE RESPONSIBILITY FOR THIS SITUATION CANNOT BE

ASSIGNED TO THE CANADIAN GOVERNMENT. I WOULD HOPE THAT THIS

WILL BE MADE CLEAR TO ALL CONCERNED AND IN PARTICULAR THAT, IF THERE

IS ANY DISCUSSION OF THE STATE OF NEGOTIATIONS WITH THE TEXTILE

ADVISORY BOARD, THEY BE INFORMED OF THE CANADIAN POSITION IN THE

TERMS I HAVE OUTLINED IT.

FINALLY, PERHAPS I MAY BE ALLOWED TO SUGGEST THAT IT WOULD BE

HELPFUL IF AT SOME TIME IN THE NEAR FUTURE WE COULD BE GIVEN A

DEFINITIVE STATEMENT OF HONG KONG'S NEGOTIATING AUTHORITY, IN GENERAL,

IN MATTERS OF EXPORT RESTRAINT. WE HAVE ALWAYS ASSUMED THAT IN A

PRACTICAL SENSE, HONG KONG HAD FULL AUTHORITY. AS RECENTLY AS LAST

YEAR, WE MADE AN INFORMAL SUGGESTION WHEN THERE WAS SOME DELAY IN

BEGINNING CONSULTATIONS ON TOWEL RESTRAINTS, THAT SOME OF THE

PRELIMINARY DISCUSSIONS MIGHT TAKE PLACE IN OTTAWA BETWEEN OURSELVES -

AND THE BRITISH HIGH COMMISSION ACTING ON BEHALF OF THE HONG KONG

AUTHORITIES. WE WERE TOLD BY THE HIGH COMMISSION THAT HONG KONG

HAD TURNED DOWN THIS SUGGESTION ON THE GROUNDS THAT THEY AND THEY

ALONE HAD THE RESPONSIBILITY FOR EXPORT RESTRAINT NEGOTIATIONS'.

ENDS.

2. FOLLOWING IS TEXT OF HONG KONG DELEGATION LEADERS REPORT, BEGINS.

'APART FROM THE GENERAL STATEMENT OF THE CANADIAN POSITION THE

WHOLE DISCUSSION DURING THE LAST DAY AND A HALF HAS BEEN ON COTTONS,

ESPECIALLY COTTON TOWELS AND TOWELLING, THE CANADIANS HAVE BEEN

RIGID. THEY ARE UNDOUBTEDLY TAKING ADVANTAGE OF OUR INABILITY TO

NEGOTIATE ON THE NON-COTTON ITEMS. [SIC]

2. THE MAJOR DIFFICULTY HAS BEEN OVER CABINET TOWELLING, A FABRIC

CAUGHT UNDER THE BILATERAL AGREEMENT ON FABRICS. CANADIANS CLAIM

THAT THIS IS A DIRECT SUBSTITUTE FOR FINISHED CABINET TOWELS

/AND

CONFIDENTIAL