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3. ON THIS BASIS WE WOULD NOT WISH YOU IN TALKING TO THE CANADIANS TO GO BEYOND FOLLOWING FORMULA FOR MMF ITEMS:
(A) POLYESTER/COTTON.
CONTINUE RESTRAINT AT EXISTING OR BETTER LEVELS, BUT ON PRO RATA BASIS UP TO 31 DECEMBER 1969, SUBJECT TO REVIEW AT THE END OF THAT PERIOD OR EARLIER IN THE LIGHT OF THE OUTCOME OF CANADIAN/JAPANESE NEGOTIATIONS.
(B) POLYESTER/POLYNO SIC SHIRTS.
OFFER TO MAINTAIN THE POSITION AS IN YOUR NOTICE TO EXPORTERS (SERIES 4 NO 3/69 REFERENCE EIC 191/10/1/3 OF 30 JULY) UNTIL
30 SEPTEMBER AND OFFER TO HAVE FURTHER DISCUSSIONS BEFORE THAT DATE
IN OTTAWA. IN SAYING THIS WE HAVE IN MIND THAT HUGHES WILL BE GOING TO OTTAWA FOR TALKS ABOUT TEXTILE POLICY GENERALLY ON 22 SEPTEMBER AND HE WOULD BE HAPPY TO PARTICIPATE WITH REPRESENTATIVES FROM HONG KONG, IF THIS IS CONVENIENT TO YOU, IN TALKS WITH THE . CANADIANS ABOUT POLYESTER/POLYNOSIC SHIRTS.
STEWART
INTERNATIONAL TRADE DISTRIBUTION
H.K.D.
CONFIDENTIAL
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