CYPHER CAT/A
FM HONG KONG #6439Z
CONFIDENTIAL
/NEUTRAL/
ECLIPSE
CONFIDENTIAL
RECEIVED IN
REGISTRY No.51
- 7 MAY 1971
HKKG/
TO ROUTINE F.C.O. TELEGRAM NO. 304 OF 6TH MAY 1971 INFO
WASHINGTON, TOKYO.
YOUR TELEGRAM NO. 328 TO ME.
AMBASSADOR KENNEDY'S VISIT.
135
HIS GENERAL LINE WAS CONCILIATORY, CONFESSING THAT THE U.S.
GOVERNMENT HAD BADLY MISHANDLED THE QUESTION OF NON-COTTON
TEXTILES AND SAYING THAT HE HAD BEEN GIVEN THE DISTASTEFUL
AND VERY DIFFICULT TASK OF SECURING NEGOTIATED AGREEMENTS
WITH THE FOUR MAIN ASIAN SUPPLIERS. HE DID NOT ATTEMPT TO PUT
A CASE ON GROUNDS OF INJURY BUT PUT THE PROBLEM PARTLY AS ONE
OF THE PRESIDENT'S NEED TO FULFIL HIS CAMPAIGN PLEDGE, PARTLY
OF PROVIDING A NECESSARY BULWARK AGAINST THE GROWING PROTECT-
IONISM IN THE U.S. BOTH OF INDUSTRY AND OF LABOUR.
2. HE SAID THAT IN JAPAN HE HAD SEEN ONLY SATO AND PERSONS TO WHOM SATO HAD REFERRED HIM INCLUDING AICHI BUT NOT
MIYAZAWA HE HAD BEEN PARTICULARLY CAREFUL TO GIVE NO
IMPRESSION THAT HE WAS ACTING IN ANY FORMAL DIPLOMATIC ROLE.
THE JAPANESE HAD SAID THAT THE ONLY WAY WHICH THEY COULD ESCAPE
FROM THE PRESENT IMPASSE THEY HAD GOT INTO WITH UNILATERAL
VOLUNTARY RESTRICTIONS, AND COULD RETURN TO THE NEGOTIATING TABLE, WAS FOR THE U.S. TO SUCCEED IN REACHING AGREEMENT WITH THE OTHER MAIN SUPPLIERS SEMICOLON AND THAT JAPAN WOULD
WELCOME THIS.
3. HE CLAIMED THAT TAIWAN HAD AGREED TO ENTER INTO NEGOTIA-
TIONS AND THAT THEY WOULD PROBABLY START ON 1ST JUNE AND LAST
THREE TO FIVE DAYS. THEY WOULD BE CONDUCTED BY JURICH WITH
A VERY SMALL TEAM OF TWO OR THREE OTHERS. HE HIMSELF WOULD
BE SOMEWHERE IN TAIWAN BUT IN THE BACKGROUND. THEY WOULD LIKE
TO COME TO US IMMEDIATELY AFTER THIS.
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CONFIDENTIAL
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