TNAG-0239-FCO40-275-Entitlement-of-Hong-Kong-to-generalised-tariffs-preferences--1970 — Page 56

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FIND ANY MUTUALLY ACCEPTABLE PROPOSAL IN TIME FOR THE MEETING

ON 24 OCTOBER, THE NIHON KEIZAI SHIMBUN HAS GONE AS FAR AS

TO REPORT THAT THE JAPANESE MINISTRY OF FOREIGN AFFAIRS IS

NOW CONSIDERING ASKING THE US TO DROP THE TEXTILE ISSUE FROM

THE AGENDA FOR THE TALKS.

3. THE JAPANESE GOVERNMENT HAS BEEN GIVING CONSIDERATION TO

WAYS OF ASSISTING THE DOMESTIC TEXTILE INDUSTRY IF RESTRICTIONS

ARE IMPOSED ON EXPORTS TO THE UNITED STATES. NO OFFICIAL

ANNOUNCEMENT OF POSSIBLE MEASURES HAS BEEN MADE, BUT PRESS REPORTS

HAVE MENTIONED GOVERNMENT PURCHASING OF SURPLUS TEXTILE

PRODUCTION, AS WELL AS DIRECT FINANCIAL ASSISTANCE. THESE

SUGGESTIONS ARE CLEARLY BEING LEAKED IN AN EFFORT TO BRING

THE INDUSTRY ROUND TO AGREEING TO A SETTLEMENT, ALTHOUGH

TEXTILE LEADERS HAVE REACTED SUSPICIOUSLY TO THEM, DECLARING

THAT, IN THE ABSENCE OF ANY AGREEMENT TO RESTRICT EXPORTS,

IT IS NOT OPPORTUNE TO CONSIDER SUCH MEASURES.

F C O PASS ALL BUT SINGAPORE.

MR. ASHE

REPEATED AS REQUESTED]

INTERNATIONAL TRADE DISTRIBUTION

COMMODITIES DEPT.

H.K. DEPT.

F.E.D.

T.P.D.

E.I.D.

E.C.I.U.

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CONFIDENTIAL

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