TNAG-0164-FCO40-200-Export-of-textiles-to-Norway-and-Sweden-1969 — Page 177

Reference

102

Hong Kong - Swedish Negotiations

I have asked the Section to look at the latest Hong Kong telegram asking for authority to negotiate concessions.

2. I have not seen the latest statistics produced by the Swedes, but I infer from the telegrams that they do not add to their case.

3. It is clear from the P.C.0. paper on Mr. Stans' visit that Sweden is the "weak sister" in Europe on the extension of the L.T.A. It is also clear that the Americans are going to make much of the restrictions which "all European countries" maintain on non-cotton textiles.

4. To make a concession to the Swedes on anoraks would seem to me very damaging at the present time. We have not bought them off by making a bilateral concession. All we have done is to encourage the Americans to ask for similar treatment.

In my view it would be better to call the bluff of both countries by leaving them with no alternative - where they have no clear case under Article XIX but to take action under G.A.T.T.

In any case, we should surely get Ministerial cover for making any concessions to Sweden in view of the line we shall be asking the President to take with Mr. Stans. It would be dangerous to apply the double standard of morality to the U.S. on this as well as to I.1.

I

5. I would like to have a meeting on this early next week. wrote a paper analysing the Swedish position just before Easter, after Mr. Goldsmith's submission to Mr. Hughes, but it was completed too late to affect the decision. There is clearly no case so far for any restriction on anoraks.

S. STEWART Ind.1.

18th April, 1969.

Mr. Kermis (CRE-1)

CC:

Mr. Carey (I.1)

Mr. Goldsmith (CRE-1)

Mr. Carter (F.C.0.)— Mr. Jupp (I.1)

Mr. Toms (CRE-2)

Miss Welch (I.1) o.r.

LAST

REF.

ALAT

{

RECEIVED IN REGISTRY No.51

22 APR 1969

AK(6/531/1

100.