2.
CONFIDENTIAL
-2-
ALTHOUGH CANADIANS HAD TAKEN OUR EARLIER STATEMENT OF
POSITION REASONABLY WELL, THIS MAY ONLY BE BECAUSE THEY DID NOT
FULLY UNDERSTAND IT, FOR THEY NOW SHOWED OBVIOUS ANGER.
THEY WERE PARTICULARLY INCENSED THAT YOU GAVE NO INKLING OF YOUR
INSTRUCTIONS TO OTTAWA BEFORE THEIR DEPARTURE.
THEIR PRESENT
INTENTIONS ARE TO CONTINUE NEGOTIATIONS ON COTTON TOMORROW,
WITHDRAWING CONCESSIONS OFFERED, THEREAFTER PROBABLY LEAVING
WEDNESDAY. THEY INTIMATED THAT THEIR FINAL TERM UN COTTON ALONE
WOULD NOW NOT BE AS GOOD AS THEY WOULD HAVE BEEN PREPARED TO
CONCEDE AS A PACKAGE DEAL INCLUDING MM F. THEY INTEND TO
ADVISE OTTAWA THAT THEY SHOULD DEMAND NEGOTIATIONS WITH YOU
IN OTTAWA NEXT WEEK OR THE WEEK AFTER. THEY INTIMATED THAT THEY
WOULD RECOMMEND THAT THEIR HIGH COMMISSIONER IN LONDON SHOULD
CALL ON MINISTERS TO PRESENT THIS PROPOSAL.
PRO
3. WE ALSO NOW UNDERSTAND FROM THE CANADIANS THAT THE MAIN PURPOSE
OF HUGHES' VISIT TO OTTAWA IN SEPTEMBER IS TO DISCUSS THE
PROPOSED DUTIES ON COMMONWEALTH COTTON TEXTILES, ABOUT WHICH
THEY ARE CLEARLY VERY CONCERNED: AND THEY FEEL THAT YOUR
PRESENT INSTRUCTIONS TO ME WILL ONLY EXACERBATE THE DIFFICULTY
OF THOSE TALKS TO SUCH A POINT THAT THEY ARE SUGGESTING
THESE EARLIER TALKS. THEY ALSO CONFIRMED OUR VIEW OF THE NEED TO
SETTLE REAL PROBLEMS IN ORDER TO DE-FUSE STANS: AND INTIMATED
THAT IF THIS COULD NOT BE DONE THEY MIGHT BE FORCED TO SUPPORT
THE STANS LINE.
4. I REGARD THE CURRENT POSITION AS POTENTIALLY HAVING DETERIORATED
RATHER FASTER THAN EXPECTED. I WOULD HOPE THAT IF CANADIANS CALL
AT LEAST THIS FOR EARLY TALKS WITH YOU, YOU WILL MEET THEM.
SHOULD HAVE THE EFFECT OF STAVING OFF THE THREAT OF A SURCHARGE BY
THAT MUCH LONGER.
CONFIDENTIAL
/5. I SHOULD
No comments yet.
Private notes are available after approval.