TNAG-0244-FCO40-280-Exports-of-textiles-from-Hong-Kong-to-USA-1970 — Page 48

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2.

GUARD

SET THE PATTERN FOR ARRANGEMENTS WITH OTHER COUNTRIES. IF THE U.K.

AUTHORITIES WERE PREPARED TO ENTERTAIN THE POSSILILITY OF A SCLUTION

ON THESE LINES HE WOULD LIKE TO COME TO LONDON VERY SOON ON SOME

OTHER PRETEXT (E.G. THE PROBLEM OF THE COMPUTER FOR THE SOVIET

INSTITUTE OF AUTOMATION) TO DISCUSS IT. GIVEN AN ENCOURAGING RESPONSE

FROM US HE WOULD SEE IF HE COULD GET APPROVAL FOR HIS VISIT WITHIN

THE STATE DEPARTMENT, BUT WOULD NOT REPEAT NOT INFORM THE DEPARTMENT

OF COMMERCE OR OTHER AGENCIES. HE WOULD GREATLY PREFER THAT THERE

WERE NO HONG KONG REPRESENTATION EITHER.

4.

HE HAD IT IN MIND THAT HONG KONG MIGHT AGREE TO (A) VOLUNTARY EXPORT LIMITATION ON SPECIFIC PRODUCTS, E.G. SHIRTS AND SWEATERS FOR WHICH SOME PRESENTABLE INJURY CASE COULD BE OFFERED (B) AN OVERALL CEILING (SAY THE 1969 LEVEL OF TRADE WITH SOMETHING ADDED) ON ALL TEXTILE IMPORTS WITH NO LIMITATION AS TO CATEGORIES.

THE JAPANESE SEEMED WILLING TO ACCEPT (A) BUT WOULD PROBABLY RESIST (B).

5. I SAID I WOULD GET YOUR REACTION. THE U.K. WAS CERTAINLY

INTERESTED IN FINDING SOLUTIONS WHICH LINKED RESTRAINTS TO ACTUAL

OR POTENTIAL CASES OF DEMONSTRABLE SERIOUS INJURY. FOR THIS REASON

IT WOULD BE DIFFICULT TO ACCEPT AN OVERALL CEILING WITHOUT INJURY

JUSTIFICATION. WE COULD NOT COMMIT HONG KONG AND BECAUSE OF THE

JURISDICTIONAL RELATIONSHIP BETWEEN HONG KONG AND LONDON IT WOULD

PROBABLY BE COUNTER-PRODUCTIVE NOT TO INCLUDE HONG KONG IN TALKS FROM

THE OUTSET. HOWEVER IT SEEMED TO ME THAT YOU MIGHT BE ATTRACTED BY

THE IDEA OF ESTABLISHING A DIALOGUE. AS FOR COVER I THOUGHT THAT THE

BOARD OF TRADE WOULD IN ANY CASE BE GLAD TO DISCUSS GENERALISED

PREFERENCES.

6. I FEEL IT WOULD BE DESIRABLE TO RESPOND TO THIS APPROACH.

CLEARLY WE COULD NOT ACCEPT THE PROPOSITION AS IT STANDS, IF ONLY

BECAUSE THIS WOULD MEAN DITCHING THE JAPANESE SEMI COLON NOR COULD

WE IMPOSE SOLUTIONS ON HONG KONG. I AM IN ANY CASE NOT SURE HOW

FAR THIS IS A CONSIDERED PROPOSITION RATHER THAN TREZISE CLUTCHING

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