CONFIDENTIAL
9.
MALAYSIA.
32
CYPHER/CAT A
ROUTINE KUALA LUMPUR
TELEGRAM NO. 699
TO FOREIGN AND COMMONWEALTH OFFICE
25 JUNE 1969
CONFIDENTIAL
ADDSD TO FCO TELNO 699 9F 25 JUNE REPEATED FOR INFORMATION SAVING TO NEW DELHI, RAWALPINDI, SINGAPORE AND COLOMBO.
YOUR TELNO 714 TO NEW DELHI.
TEXTILE COUNCIL REPORT ON COTTON.
WHEN IN 1966 WE INTRODUCED THE MIXTURE OF GLOBAL AND BILATERAL
QUOTAS THE MALAYSIAN GOVERNMENT HAD BEEN IN FAVOUR OF TOTALLY
BILATERAL ARRANGEMENTS FAILING LIBERALIZATION BECAUSE THEY FELT
THEY COULD NOT COMPETE WITH E.G. PAKISTAN. SUBSEQUENT STATISTICS
SUGGEST THAT MALAYSIANS DID COMPARITIVELY WELL MAINLY BECAUSE
GLOBAL AND BILATERAL QUOTAS TEND TO BE TRADED ONE FOR ONE.
2. IN 1966 SPEECH THE PRESIDENT OF THE BOARD OF TRADE IMPLIED
THAT ALL RESTRICTIONS WOULD BE RENEWED IN 1970. IF THIS DOES
NOT HAPPEN THE MALAYSIANS MAY, AND IF A RESTRICTIVE CHANGE IS MADE THEY PROBABLY WILL, REFER BACK TO THAT STATEMENT.
THEY MIGHT POINT OUT THAT THEY IMPORTED IN 1967 OVER TWICE
AS MANY TEXTILES AND OVER 10 TIMES AS MUCH CLOTHING FROM BRITAIN
AS THEY HAD EXPORTED TO BRITAIN. ADMITTEDLY THIS WILL INCLUDE
MANY NON COTTON ITEMS. IT IS NOT POSSIBLE TO ESTIMATE HOW
MUCH OUR 1966 RESTRICTIONS ON COTTON IMPORTS MAY HAVE BEEN
A PARTIAL CAUSE OF THE MALAYSIAN DECISION TO REMOVE ALMOST
ALL COMMONWEALTH PREFERENCE IN SEPTEMBER 1966.
RECEIVED IN REGISTRY No.51
6/54/8
| LAKKG / 545 / 8
LAST
REF.
25
NEXÌ
REF.
13. AT
CONFIDENTIAL
No comments yet.
Private notes are available after approval.