CYPHER/CAT A
ROUTINE HONG KONG
TELEGRAM NUMBER 718
CONFIDENTIAL [NEUTRAL]
TOP COPE
CONFIDENTIAL
(120
TO FOREIGN AND COMMONWEALTH OFFICE
12 SEPTEMBER 1969.
OTTAWA AND TOKYO.
ADDRESSED FCO TELEGRAM 718 OF 12 SEPTEMBER RFI
CANADIAN TEXTILE NEGOTIATIONS.
THESE WERE HELD ON 8 AND 9 SEPTEMBER. MEMORANDUM OF UNDERSTANDING ON
COTTONS HAS BEEN SIGNED AND LETTER ON NON-COTTON RESTRAINTS SENT TO
CANADIAN TRADE COMMISSIONER.
2. HOWARTH REITERATED CANADIAN POLICY OF DEALING WITH LOW-COST
TEXTILE SUPPLIERS BY MEANS OF LIMITED RESTRAINTS AS NECESSARY IN
RESPONSE TO INTERNAL PRESSURES. THIS POLICY'S CONTINUED VIABILITY
DEPENDS ON BEING ABLE TO SHOW IN CANDADA THAT IT WORKS. HE MADE IT
CLEAR THAT SHIRTS WERE AT PRESENT THE MAJOR PROBLEM.
3. WE SAID THAT IF ANY NEW RESTRAINTS WERE TO BE INTRODUCED WE WOULD
WISH TO REMOVE SOME OF THE EXISTING ONES AND ARGUED THAT THERE WAS
NO NEED TO CONTINUE RESTRAINTS ON POLYESTER/COTTON BLOUSES AND
TROUSERS SINCE A LARGE PROPORTION OF OUR EXPORTS ARE OUTSIDE THE
RESTRAINTS AND THIS SHOWS THAT THE EFFECTIVE LIMIT ON EXPORTS OF
M.M.F. BLOUSES AND TROUSERS IS THE MARKET DEMAND, NOT THE RESTRAINT
LEVELS.
4. HOWARTH WAS UNABLE TO ACCEPT THIS, LARGELY, WE SUSPECT, BECAUSE OF
THE REPERCUSSIONS WITH OTHER RESTRAINED SUPPLIERS.
RECEIVED IN
REGISTRY No.51 15 SEP 1969
NICK G331/1
/5. WE THEN
CONFIDENTIAL
No comments yet.
Private notes are available after approval.