TNAG-0245-FCO40-281-Exports-of-textiles-from-Hong-Kong-to-Sweden-1970 — Page 111

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CYPHER/CAT A

IMMEDIATE FOREIGN AND COMMONWEALTH OFFICE TELEGRAM NUMBER 347

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HONG KONG

TO

21 MAY 1970. (MC)

ADDRESSED TO GOVERNOR HONG KONG TELEGRAM NUMBER 347 OF 21 MAY REPEATED FOR INFORMATION TO UKMIS GENEVA, STOCKHOLM, WASHINGTON,

TOKYO AND BRUSSELS,

YOUR TELEGRAM NUMBER 283: CONSULTATIONS WITH SWEDEN: TEXTILES.

SINCE RECEIVING YOUR REPORT ON THE FIRST ROUND IN HONG KONG WE

HAVE BEEN CONSIDERING HOW BEST TO HANDLE THE SWEDES NEXT WEEK,

HAVING REGARD TO THE DEVELOPING SITUATION ON THE AMERICAN FRONT.

2. AS A RESULT OF THE VISITS OF CAREY AND MCENERY TO HONG KONG,

A REAPPRAISAL OF WHITEHALL POLICY ON TEXTILES IN RELATION TO

HONG KONG IS NOW IN TRAIN. THIS APPRAISAL IS RAISING A NUMBER OF

DIFFICULT ISSUES: HOWEVER WE HOPE TO MAKE PROGRESS AND SHALL OF

COURSE CONSULT YOU ABOUT POSSIBLE SOLUTIONS.

3. MEANWHILE, AS SEEN FROM HERE, THE PROBLEM ON YOUR CONSULTATIONS

WITH SWEDEN IS, ON THE ONE HAND, NOT TO STAND IN THE WAY OF ANY

DEAL YOU MIGHT THINK IT NECESSARY TO MAKE WITH THE SWEDES IN THE

INTERESTS OF THE HONG KONG INDUSTRY AND, ON THE OTHER HAND, TO

AVOID AN EROSION OF THE UK POSITION ON INTERNATIONAL TRADE IN

TEXTILES WITH PARTICULAR REFERENCE TO THE AMERICAN PROBLEM,

4. WE HAVE NO DOUBT THAT YOUR NEGOTIATORS ON THE NEXT ROUND WITH

/SWEDEN

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