Dd. 32855 Ed (4200)
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CONFIDENTIAL
3-
We
would enable your representatives to pursue the
negotiations with some hope of avoiding a break-
down in circumstances which would result in the
Canadians immediately imposing a surcharge.
drew also upon the fact that, as I mentioned in
paragraph 2 of my message to you contained in
F.C.0. telegram No. 538, the Board of Trade are
about to enter into some important and delicate
negotiations with the Canadians on another issue
not connected with Hong Kong. With this in mind
I said that I was sure that they would not wish
gratuitously to have a row with the Canadians on
the question of Hong Kong textiles imports and I
hoped therefore that they might be prepared to
look sympathetically on your demand to be allowed
to pursue the negotiations for an extension of
the existing restraint agreements.
3. At first Hughes, who is concerned with the
other negotiations which I have mentioned, spoke
sympathetically and for a moment I thought that
we might get what we wanted. However, the full
weight of the Board of Trade effort was then
deployed into showing that it really was quite
impossible for such instructions to be issued,
given the decisions recently taken by H.M.G.
it at
the tariff about "textile policy(and also/further contingent decisions which have yet to be made) which it was
contended would be breached if you were now to be
given authority to negotiate further restraint
agreements.
They said that in no circumstances
could they possibly concede authority to xegxxxxxtex
you Dorstbexx
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