TNAG-0153-FCO40-189-Exports-of-cotton-textiles-to-Canada-1969 — Page 13

HONG KONG

G/CANADA

MW.

Following the meeting held in his room last night, the Secretary asked me to get in touch with the Hong Kong representatives and to explain the considered views which he had promised last Friday to give them, after he had had a little time for reflection. In the event, Mr. Sellers and Kr. Jones came to see me at 8 p.m. It was impossible to get Kr. Jordan because he had gone to the theatre.

I decided that the best thing was to pass on the Secretary's views in the form of a series of specific points which I had worked out with Mr. Stewart after the Secretary's meeting ended. I asked Mr. Jones to take these points down so that there should be no room for misunderstanding. They are as follows:-

(1) We are very anxious not to give the United States, any lever

for demanding restraints in any form on imports of non- cotton textiles.

(2) We do not want to break front with Japan in opposing the

views of Mr. Stans.

(3) We are not really happy at being obliged to decided on this particular issue at a time when we are engaged in reviewing the whole outlook for trade in textiles. (4) Nevertheless we appreciate the practical difficulties for

Hong Kong.

(5) We are prepared, if Hong Kong wishes, to allow them to go

ahead with talka with the Canadians in Ottqwa earlier than September 22nd.

(6) We think it important that the criterion of injury should

be observed.

(7) We would remind the Hong Kong representatives of the

reference to "full consultation and association" in para- graph 3 of the text agreed last week, and we should wish to be represented at any renewed talks with the Canadians. (8) On this basis it might well prove possible for Hong Kong

to reach an agreement with the Canadians before September 22nd in association with our representative.

(9) If, for any reason, this does not prove possible, the

matter could be reviewed again when Mr. Hughes goes to Ottawa on September 22nd.

(10) If agreement is reached, we are prepared to agree that it

Re

should be on the basis of a 12 month extension of res- traints on the polyester/cotton items with a new restraint for a similar period on polyester/polynosic shirts. should want the two existing provisos in the 1967/68 Agreements to be retained.

(11) It would be useful if some possibility of review within

the 12 month period could be negotiated, such a review to take place in the light of unexpected developments, etc.

I also said to Mr. Jones that we knew the Norwegian case would be coming up soon and expressed the strong hope that we should avoid any misunderstandings between us when we came to consider specific Norwegian requests on non-cotton textiles.

/Mr. Jones