TNAG-0244-FCO40-280-Exports-of-textiles-from-Hong-Kong-to-USA-1970 — Page 26

CONFIDENTIAL

53

Mr. Milne

Non-cotton textiles

I sent you earlier today the copies which I had received from Washington of the Japanese paper of 9 March on this

subject.

2. So far as I can see, the line of thinking in Mr. Dunnett's draft paper is fairly close to the Japanese thinking as expressed in their paper. But I think that Mr. Dunett's paper needs to be collated with the Japanese paper, to see whether it would be helpful to us to vary any of his points in order to present more of a united front with the Japanese (or I suppose we might think it bet er deliberately to avoid getting ourselves too closely aligned with the Japanese arguments, if only for presentational reasons). I think too that possibly what the Japanese state in their paper may affect some of the discussion in Mr. Lunnett's draft paper

of the likely reactions of other countries affected. 3. It appeared from the Japanese paper that they were dealing with some proposal put to them by the U.S. Government in January which differed from earlier U.S. proposals in that it did not specifically include provision for an overall ceiling on imports of non-cotton textiles (though according to the Japanese paper the US proposals taken as a whole would still produce the same effect). Mr. Dunnett's draft paper seems to be based on the assumption that the U.S. position remains that there must be an overall ceiling (see in particular paraɛraph 14). I think that the relevant reference in the Japanese paper shoula be studied to sec whether Mr. Dunnett's draft paper should make provision for Mr. Trezise taking a rather more complicated line with us on this point than the draft is at present designed to

meet.

Copies to: Mr. Laird

Mr. de Courcy Ireland Mr. J. Murray

J.R.A. Bottomley

18 March, 1970

Conta Apa

CONFIDENTIAL