TNAG-0244-FCO40-280-Exports-of-textiles-from-Hong-Kong-to-USA-1970 — Page 167

PARTICULARLY INTERESTED IN DENIAU'S PLANS TO VISIT LONG IN GENEVA

AND THEN MEET STANS IN WASHINGTON EARLY IN MARCH.

3. YOKOYAMA ASSERTED THAT IT HAD ALWAYS BEEN THE JAPANESE INTENTION

THAT THE AMERICANS SHOULD PARTICIPATE IN ANY INTERNATIONAL CONFERENCE ON TEXTILE EXPORTS TO THE U.S. I SAID THAT I DID NOT THINK THIS

WOULD BASICALLY ALTER OR ATTITUDE AT THIS STAGE.

4. WHEN I SAW HIRAHARA AT THE MINISTRY OF FOREIGN AFFAIRS TODAY

I MENTIONED HARADA'S APPROACH TO SANDERS AND MY REPLY TO YOKOYAMA.

HE EXPRESSED ASTONISHMENT AND SAID THAT THE MINISTRY OF FOREIGN

AFFAIRS HAD NO INTENTION OF ASKING ANY OTHER COUNTRY TO TAKE THE

INITIATIVE IN THIS WAY. WHATEVER MIGHT HAVE BEEN SAID AT MITI,

THE JAPANESE PRIME MINISTER AT ANY RATE IN SPEAKING TO DENIAU, ALTHOUGH

HE HAD EXPRESSED HIS CONCERN OVER THE TEXTILE ISSUE, HAD MADE IT

CLEAR THAT THIS WAS A BILATERAL JAPANESE PROBLEM.

5. IN THE LIGHT OF THIS I THINK WE CAN FOR THE PRESENT DISCOUNT

THE JAPANESE APPROACH TO SANDERS ON 5 FEBRUARY. IT SEEMS CLEAR THAT

THERE WILL BE INCREASING PRESSURE ONHTHE JAPANESE TO MAKE SOME

FORM OF LIMITED COUNTER-PROPOSAL TO THE AMERICANS WHICH WILL

INVOLVE SOME FORM OF SELECTIVE VOLUNTARY EXPORT CONTROL OVER

A LIMITED PERIOD. IF THIS IS ACCEPTED, THE JAPANESE WILL UNDOUBTEDLY

EXPECT OTHER ASIAN COUNTRIES, INCLUDING HONG KONG, TO FOLLOW

SUIT, JAPANESE INDUSTRY AND MITI, HOWEVER, WILL TAKE SOME PURSUADING.

A MAJOR FACTOR WILL BE FEAR THAT SELECTIVE CONTROLS OF THIS KIND

COULD BE USED AS A PRECEDENT FOR OTHER ITEMS.

FORATION

F C O PASS ALL INFORMATION ADDRESSEES

8845 25/2

PILCHER

SENT AT

RECD AT 1215 25/0