TNAG-0239-FCO40-275-Entitlement-of-Hong-Kong-to-generalised-tariffs-preferences--1970 — Page 5

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Mr. Kryear

trong Kong Defin

K.245

CYPHER/CAT A

PRIORITY WASHINGTON

i

TO FOREIGN AND COMMONWEALTH OFFICE

TELNO. 3153

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2418342.

24 OCTOBER, 1970

Rff

Refeattel to Hong Kong

*

NEUTRAL.

ADDRESSED TO FCO TELKO. 3153 OF 24 OCTOBER REPEATED FOR INFORMATION MA TO UKDEL EEG BRUSSELS UK MISSION GENEVA AND TDO NEW YORK AND SAVING

TO TOKYO AND OTTANA.

MY TELNG. 2976: TRADE TALKS AND TEXTILES..

THE WASHINGTON POST TODAY HEADLINED A STORY THAT THE JAPANESE HAD OFFERED TO ROLL BACK THEIR TEXTILE EXPORTS, THE REPORT QUOTED UEMURA, PRESIDENT OF THE JAPANESE FEDERATION OF ECONOMIC ORGANISATIONS, AS SAYING IN WASHINGTON THAT THE JAPANESE TEXTILE INDUSTRY HAD RETREATED FROM ITS EARLIER POSITION OF REQUIRING PROJE OF INJURY BEFORE AGREEING TO QUOTAS, THAT THE PROSPECTS WERE FAVOURABLE FOR RE-OPENING BEGOTIATIONS LEADING TO VOLUNTARY EXPORT RESTRAINTS AND THAT ANY FORTHCOMING AGREEMENT WOULD RESULT IN AN ACTUAL ROLL-BACK OF JAPANESE TEXTILE EXPORTS, ESPECIALLY IS

MAN-SADE FIBRES.

2. WE HAVE DISCUSSED THIS REPORT WITH THE STATE DEPARTMENT AND WITH ATTORNEYS FOR JAPANESE 19TERESTS. THEY CONFIRMED THAT DEPURA HAS HELD TALKS WITH A WIDE RANGE OF HIGH RANKING U.S. OFFICIALS IN AN CFFORT TO FIND A BASIS FOR RE-OPENING NEGOTIATIONS ON TEXTILES EUT SAID THAT UEMURA COULD NOT COMMIT THE JAPANESE INDUSTRY AND THAT THE CONVERSATIONS WERE LIMITED TO EXPLORING ELEMENTS OF A POSSIBLE UNDERSTANDING WITHOUT GOING INTO DETAILS. VEHURA HAD INDICATED THAT THE JAPANESE MIGHT ACCEPT AN EARLIER BASE PERIOD THAN THEY HAD PREVIOUSLY PROPOSED. THE EXTENT OF COVERAGE OF AN AGREEMENT WAS NOT DISCUSSED. WHAT HAD BEEN TAKING PLACE HERE NOT (REPEAT NOT)

/NEGOTIATIONS AND

lokko

cojiz

2.

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