TNAG-0245-FCO40-281-Exports-of-textiles-from-Hong-Kong-to-Sweden-1970 — Page 114

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Your telegram No. 283. CONSULTATIONS WITH SWEDEN

24/5

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;

of course however we hope to make progress and shall 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 nece- ssary 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 will, even if they agree a deal, wish formally to record their disagreement with the

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