TNAG-0245-FCO40-281-Exports-of-textiles-from-Hong-Kong-to-Sweden-1970 — Page 138

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Export of textiles from Hong Kong to Sweden

Hong Kong telegram 231 of 10 April informed us that consultations with Sweden on textiles already under restraint and possibly on restraint of further items, would be held in Hong Kong on 27 April. They mentioned that Hong Kong intended to seek a combined limit for cotton and equivalent non-cotton items where restraints on both were unavoidable. This was the first advice that we had received from Hong Kong on this matter.

2.

Mr. Murray of FED, who was accompanying the Secretary of State on his visit to Hong Kong from 17 to 19 April, was asked by Mr. Heath in his minute. of 15 April to mention to the Governor the concern of MINTECH over difficulties which might be caused to HMG's international policy by Hong Kong's extending their agreement with Sweden on the voluntary limitation of certain non-cotton textiles. This concern was with reference to the current negotiations between Japan and USA on restriction of Japanese exports of non-cotton textiles to USA and the effect which any agreement by Hong Kong with Sweden might have on them.

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3. It was arranged that Mr. Carey of MINTECH, who was going to Tokyo, would visit Hong Kong en route to discuss with the Governor the negotiations with the Swedes. He told the Hong Kong Government that it was proposed to send a MINTECH representative to sit in on the talks to which Hong Kong agreed. Mr. Carey pressed Hong Kong to avoid substantive negotiat- ions in view of the broader issues of policy which were at stake but they were reluctant to do so.

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4. Hong Kong sent us copies of the Swedish statical data on textile items covered by the current agreement; these arrived on 22 April as did Hong Kong's telegram 1. No. 257 of 21 April. The stastics however did not

cover the five new items of non-cotton textiles referred to in Hong Kong's telegram.

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5. FCO telegram to Hong Kong No. 257 of 22 April pointed out that, as the figures had only just been received, there could not be a meaningful discussion with the Swedes at the talks during the next week. Hong Kong should therefore probe the injury case and ask questions on restraint levels without entering this into negotiation, Hong Kong was also informed in theip telegram that the Swedish Government were to be informed of our continuing concern in this matter. Hong Kong were also asked for a full set of Hong Kong's own statistics on both cotton and non-cotton items. These statistics arrived on 29 April.

6. FCO telegrams No. 80 of 22 April and No. 81 of same date to Stockholm instructed the Embassy to speak to the Swedish authorities informing them that, AS the statistics had only just arrived in London, adequabi study was at possible in the time availab.

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