TNAG-0245-FCO40-281-Exports-of-textiles-from-Hong-Kong-to-Sweden-1970 — Page 109

CONFIDENTIAL

CYPHER CAT A

IMMEDIATE HONG KONG

TELEGRAM NUMBER 337

TO FOREIGN AND COMMONWEALTH OFFICE

22 MAY 1970.

66

CONFIDENTIAL [NEUTRAL]

ADDRESSED F C O TELNO 337 OF 22 MAY R FI

UKMIS GENEVA (FOR JORDAN) STOCKHOLM, WASHINGTON, TOKYO AND BRUSSELS.

YOUR TELEGRAM 347: TEXTILE CONSULTATIONS WITH SWEDEN.

**

•

IS

I CONFIRM THAT IF, AS I EXPECT, THE SWEDES PRESS THEIR DEFENCE

POLICY ARGUMENT AND THEIR VIEW THAT ONLY LOW COST' COMPETITION

-OR MORE PRECISELY COMPETITION FROM ''LOW COST COUNTRIES''

HARMFUL, OUR NEGOTIATORS WILL WISH FORMALLY TO RECORD THEIR

DISAGREEMENT WITH THE CRITERIA SEMICOLON EVEN THOUGH THERE MAY

BE NO REASONABLE ALTERNATIVE BUT TO MAKE A DEAL. I AM ACCORDINGLY

GRATEFUL FOR YOUR PROPOSAL THAT MCENERY, WHOSE PRESENCE WILL

BE WELCOMED, SHOULD MAKE A STATEMENT AS ENVISAGED IN YOUR PARA. 5.

2. ! NOTE YOUR PARA. 4 IN REGARD TO ROLL IN AND AM GRATEFUL,

FOR YOUR UNDERSTANDING OF OUR POSITION. HOWEVER I AM NOT CERTAIN

I UNDERSTAND THE POINT YOU WISH TO MAKE ON SWING AS:

(A) THE CONCEPT OF SWING IS TO PERMIT FLEXIBILITY BETWEE

DIFFERENT ITEMS UNDER RESTRAINT SEMICOLON

AND

B) RESTRAINTS WILL ONLY BE CONCEDED WHERE A DAMAGE CASE IS

ESTABLISHED,

RXRVED IN

LAST

REF.

HIK6/203/1 65)

NEXT

REF.

69

3.

YOU WILL APPRECIATE THAT WHILE WE ARE LIKELY TO HAVE

DIFFICULT ARGUMENTS WITH THE EEC ON SWING BETWEEN SPECIFICS

IN ANY ARTICLE 4 COTTON TEXTILE ARRANGEMENT WITH THE COMMUNITY

AS A WHOLE, I CANNOT AFFORD NOT TO PRESS FOR SWING ARRANGEMENTS

CONFIDENTIAL

/IN AGREEMENTS