TNAG-0244-FCO40-280-Exports-of-textiles-from-Hong-Kong-to-USA-1970 — Page 186

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3. THE FACT THAT THE JAPANESE ARE TRYING ON THIS IDEA OF A

RESTRICTED MULTINATIONAL MEETING (A DISTINCT BACKSLIDING AS

COMPARED WITH THEIR POSITION A FEW MONTHS AGO) APPEARS TO INDICATE

THAT THEY ARE, IN THEIR ANXIETY TO 'GET OFF THE BILATERAL HOOK”,

NOT TAKING SERIOUSLY ENOUGH THE DANGERS TO WORLD TRADE GENERALLY

AND TO THEIR OWN NEGOTIATIONS WITH THE U.K. AND THE E.E.C.

4.

ON THE OTHER HAND WE HOPE THAT, WERE THERE TO BE AN INTERNATION-

AL MEETING, IT WOULD INCLUDE ALL COUNTRIES WHICH EXPORT TEXTILES

(NOT MERELY THOSE KNOWN AS 'EXPORTING COUNTRIES' IN CTC JARGON).

STANS HAS ALREADY ATTEMPTED TO DIVIDE ASIA FROM EUROPE IN THIS

CONTEXT AND JAPANESE MIGHT WELL HOPE TO USE A NARROWER MEETING

TO THROW MOST OF THE ONUS ON OTHER ASIAN PRODUCERS. THIS IS FOR

US MUCH MORE THAN A MATTER OF 'EQUALITY IN MISERY'.

5.

I UNDERSTAND THAT THE E.E.C. HAVE SAID THAT, IF IT LOOKS

AS THOUGH THE U.S. ARE GETTING SOMEWHERE WITH THE JAPANESE,

THE E.E.C. WILL AT ONCE SEEK A GATT MEETING TO TRY TO KEEP THE

SITUATION UNDER CONTROL. PRESUMABLY DENIAU AND CO. IN TOKYO

THIS WEEK WILL REINFORCE THIS WARNING. IT WOULD BE HELPFUL

IF THE EMBASSY COULD LET US HAVE ANY AVAILABLE INFORMATION BEFORE

WE SEE ERNST IN HONG KONG.

6.

IN AN ARTICLE ENTITLED JAPAN OUR LARGEST TRADE DEFICIT'

IN OCTOBER 1969 ISSUE OF DISTRIBUTION WORLD WIDE AN AMERICAN

PUBLICATION PRINCIPALLY CONCERNED WITH INTERNATIONAL DEVELOPMENT

Tom

IN FREIES-S419945589.13)$ 24953*

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