TNAG-0162-FCO40-198-Export-of-textiles-to-Norway-and-Sweden-1969 — Page 130

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PRIORITY HONG KONG

TELNO 2293

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CONFIDENTIAL

TO FOREIGN AND COMMONWEALTH OFFICE

31 DECEMBER 1968

CONEIDENTIAL /NEUTRAL_/

ADDRESSED FCO TELEGRAM NO. 2293 OF 31ST DECEMBER REPEATED STOCKHOLM

AND HONG KONG GOVERNMENT LONDON OFFICE.

YOUR TELEGRAM NO. 1681: HONG KONG TEXTILE EXPORTS TO SWEDEN.

1 APOLOGIZE FOR NOT HAVING SENT A SPECIFIC REPLY TO YOUR 1672 EARLIER BUT MY M627 TO STOCKHOLM CROSSED WITH 1672 AND COVERED MUCH THE SAME

9 GROUND.

2

12

2. FOR THE REASONS STATED IN PARAGRAPH 3 OF M627, COUPLED WITH MY AVAILABLE STAFF BEING FULLY STRETCHED, THE FACT THAT THE SWEDES REQUESTED THE CONSULTATIONS AND THAT THE PREVIOUS NEGOTIATIONS WERE HELD IN STOCKHOLM AND LONDON (THEIR VISIT TO HONG KONG IN JULY BEING FOR IMPLEMENTATION ONLY) THE PRESENT ROUND MIGHT REASONABLY BE HELD IN HONG KONG, HENCE MY PREFERENCE FOR THE SWEDES TO COME HERE 3. HOWEVER IN VIEW OF PARAGRAPH 1 OF STOCKHOLM TELEGRAM 20 TO ME, COUPLED WITH INFORMATION FROM CONSUL-GENERAL THAT THEIR NEGOTIATORS ARE FULLY COMMITTED FOR JANUARY, AND OUR DESIRE TO AVOID ANY BREAK IN EXPORTS OF THESE ITEMS, IT MAY NOT BE IN OUR INTEREST TO INSIST ON THE SWEDES COMING TO HONG KONG. IN ANY CASE THE SWEDES MAY REALLY DE IN NO HURRY TO ENTER INTO NEGOTIATIONS AS THEY HAVE TEMPORARILY

GOT WHAT THEY WANT,

4. FOR OUR PART WE ARE ALSO IN NO PARTICULAR HURRY BECAUSE TRADE CAN CARRY ON FOR THE TIME BEING AND PRESSURES TO CONTINUE WITH NEW AUTHORISATIONS ARE UNLIKELY TO BECOME STRONG UNTIL EARLY FEBRUARY.

WE MUST

HOWEVER HAVE SOME CONCLUSION TO THE PRESENT UNCERTAINTY NOT LATER THAN 20TH MARCH WHEN THE LAST E/AS LAPSE, IF NOT ALREADY UTILISED. DELAY MAY POSSIBLY DEFLECT TRADE TO OUR COMPETITORS.

5. ON BALANCE, WITHOUT FORMALLY CONSULTING THE TRADE IN HONG KONG, IT WOULD SEEM BEST TO AVOID PRECIPITATE CONSULTATIONS BUT TO SEEK TO HOLD THEM IN THE LAST WEEK OF JANUARY OR THE FIRST WEEK IN FEBRUARY. OUR PREFERRED VENUE WOULD STILL BE HONG KONG, BUT IT WOULD BE EASIER TO ACCEPT STOCKHOLM AT THAT TIME.

6. IN VIEW OF PARAGRAPH 2 OF STOCKHOLM NO. 20, IT IS DIFFICULT TO DETERMINE THE STRENGTH OF THE SWEDISH CLAIM OF THREATENED SERIOUS DAMAGE. BY REFERENCE TO OUR EXPORT FIGURES THEY MAY HAVE REASONABLE GROUNDS FOR WOMENS' ANORAKS WHERE THE AGREED RESTRAINT LEVEL FOR THE MALE GARMENT IS 197,000 PIECES FOR ONE YEAR TO 28TH JUNE 1969 AND EXPORTS OF WOMENS ANCIAKS FROM 1ST JULY TILL 15TH DECEMBER HAVE ALREADY AMOUNTED TO 241,450 PIECES WITH A FURTHER 373,228 PIECES EXPORTABLE UNDER E/AS.

CONFIDENTIAL 14 /7. ALL

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