TNAG-0154-FCO40-190-Exports-of-cotton-textiles-to-Canada-1970 — Page 56

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CONCLUSIONS:

6. Stewart conceded that the Canadians appeared to

have a case on shirts; on trousers he argued that it

would be profitless to continue restraint; and on

blouses he considered that there was no case.

7. Jones replied that the Hong Kong Government were

satisfied that a reasonable case existed for continuing

restraint on all three and for adding polyester/polynosic

shirts. His Government were convinced that the

alternative would be the imposition of the surcharge

which would seriously damage Hong Kong's trade. The

Hong Kong Government also considered that to adopt too

intransigent a line with the Canadians would carry the

serious risk of driving them into the Stans camp in

favour of much more wide ranging restrictions on textile

imports.

Hong Kong Government Office,

54 Pall Mall,

LONDON, S.W.1.

4th September, 1969.