CYPHER/CAT A
CONFIDENTIAL
IMMEDIATE HONG KONG TO FOREIGN AND COMMONWEALTH OFFICE
TELNO 475
11 JUNE 1969
151
CONFIDENTIAL
[NEUTRAL]
ADDRESSED FCO AS MYTEL. NO. 475 OF 11TH JUNE RFI STOCKHOLM,
YOUR TELEGRAM NO. 387.
SWEDISH TEXTILE NEGOTIATIONS.
TOP CUM
NOT KNOWING PRECISELY WHAT ISSUES OF POLICY YOU BELIEVE TO BE
INVOLVED I FIND IT DIFFICULT TO COMMENT, EXCEPT TO SAY AGAIN
THAT I BELIEVE THAT, IF WE INTRANSIGENTLY REFUSE TO CONSIDER
RESTRAINT IN CASES AS STRONG AS THE SWEDES CAN NOW PRESENT,
WE STRENGTHEN STANS' HAND AND RISK IMPORT RESTRICTIONS, WHICH I
BELIEVE HMG WOULD NOT BE ABLE SUCCESSFULLY TO CHALLENGE IN THE
GATT.
2.
J
WE REPEATED TO STANS THAT WHERE DAMAGE TO INDUSTRY COULD BE
SHOWN IN SPECIFIC CASES WE HAD IN THE PAST AGREED TO RESTRAIN
AND THAT WE WERE ALWAYS PREPARED TO DISCUSS SUCH CASES. IF WE
NOW REFUSE THE SWEDES WHERE THEY BELIEVE WITH REASON THAT THEY
HAVE A STRONG CASE, THEY ARE LIKELY TO SUPPORT STANS MORE STRONGLY
AND THE INFORMATION WILL BE PASSED TO TEXTILE INDUSTRIES IN OTHER
COUNTRIES WHO WILL INCREASE PRESSURE, ON THEIR GOVERNMENTS TO GO
ALONG WITH STANS ON THE MULTILATERAL AGREEMENT, WHICH WE BELIEVE
WOULD HAVE MUCH MORE RESTRICTIVE EFFECTS THAN OUR CASE-BY-CASE
RESTRAINTS.
3. I SHOULD FIND IT VERY DIFFICULT TO EXPLAIN TO ANYONE HERS
WHY, WHEN PREVIOUS ROUND OF CONSULTATIONS WITH SWEDES WAS HELD
IN APRIL, WE HAVE NOT BEEN ABLE TO AGREE ON NEGOTIATING INSTRUCTIONS
YET. REPORT IN MY TELEGRAM 339 HAS BEEN IN YOUR HANDS SINCE
30 APRIL.
RL4...JANPROPOSALS IN YOUR PARA. 2. I HAVE FOLLOWING COMMENTS: ROITRY No.51
12 JUN 1969
HKK 6/501/1
LAST
FEE.
148
REX,
162
CONFIDENTIAL
/(A) WE
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