TNAG-0212-FCO40-248-Departmental-briefs-on-Hong-Kong-1970 — Page 132

F

CON DENTIAL

11

restraints Congress may proceed with the

Mis

Bill.

3. We have tried to stiffen Japanese, and

other Asian producers' resistance to American

demands. Mr. Wilson raised the matter with

Mr. Nixon in January and subsequently wrote to

the President about it. He suggested that the

problem might be discussed in GATT; Mr.Stewart;

spoke to the Japanese Foreign Minister in April

and to Mr. Rogers in May. We, and the EEC

meeting

proposed a four power/(US, UK, EEC and Japan)

be held to consider the problem. The Americans

refused this proposal and told us that they

intended to pursue their bilateral approaches.

Future Problems and Dangers

4. If the Japanese do reach agreement with

.

the Americans the latter will then ask the

other Asian producers for similar restraints.

We shall then have to decide, in the light of

the terms of the agreement between the

Americans and the Japanese, how far we should

Chald

permit Hong Kong to follow suit, and how we

сем вла

should prevent possible diversion of Asian

non-cotton textile exports to the British

market.

British Interests

5.

(i) to dissuade the US Administration from

taking international action to protect

its textile industry in such a way as

to damage the liberalisation of world

trade (the economic case for such

protection is relatively weak): such

a step would encourage other

protectionist lobbies in the US and

could lead to protectionism in other countrios;

mconjuncin

with the

H.K. ontbindi of

We shall alico her boidarida

NOTHIN

TO BE WRITTEN IN THIS MARGIN