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2
is no obligation placed on exporting countries to do other than
listen to such offers and indications in the light of the hypothesis
of a three-year extension.
Hong Kong's Position
3.
The Department has asked Mr. Dodge, supported by Messrs.
Jones and Dorward, to make a formal exploratory approach to the European Commission in Brussels. A copy of their brief has been sent to you separately. You are now requested to make a similar
approach to the U.S. State Department at an appropriate level. You should enquire whether the U.S. authorities are prepared to
consult now in accordance with the commitment which they have
accepted without reservation at the C.T.C. meeting in December, If they are, then you should ask for the specific indications
concerning the treatment which they would grant to Hong Kong
during any period of extension of the C.T.A.
4.
From informal contacts in Geneva with Mr. Stanley Nehmer,
there are indications that the U.S. may seek to link any improvements
to the cotton bilateral with their own proposal to limitations on
Should the Americans take this line, exports of non-cotton textiles.
you should point out that this appears to be contrary to their
commitment given at the December C.T.C. meeting, at which they chose
not to raise the non-cotton issue. Furthermore, it was the U.S.
representative who said at the October C.I.C. meeting that: "He
therefore hoped that the question of non-cottons, at least for the
The future of present time, would be kept separate from cottons. the Arrangement should first be dealt with and then, in the not- too-distant future, the question of other fibres might be examined
by G.A.T.T." The full C.T.C. summary record of the U.S. inter-
Appn. 2 vention is at Appendix 2.
5.
Should the Americans attempt to draw you into discussions
on non-cotton textiles, you should stress the points made above and
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