(23)
CYPHER/CAT A
FM HONG KONG 158855Z
CONFIDENTIAL [FRAME]
CONFIDENTIAL
173
WKK 616
TO ROUTINE FCO TELNO 196 OF 15 FEBRUARY INFO HONG KONG GOVERNMENT
OFFICE LONDON (FCO PLEASE PASS) BRUSSELS (FOR DODGE) UKMIS GENEVA (FOR PEARSON) UKREP BRUSSELS BONN COPENHAGEN DUBLIN THE HAGUE
LUXEMBOURG PARIS ROME.
UKREP BRUSSELS TELEGRAM 578 TO YOU: NON-COTTON TEXTILES.
THE FOLLOWING POINTS - IN ADDITION TO THOSE IN MY TELNO 153
TO YOU MAY BE USEFUL IN DEFENCE OR EXPLANATION OF OUR UNILATERAL
RESTRAINT ON EXPORTS TO GERMANY.
ITEMS SELECTED FOR RESTRAINT.
FOR LACK OF RELEVANT STATISTICS, WE WERE UNABLE TO ESTABLISH IN WHAT SECTORS (IF ANY) THERE WAS GENUINE MARKET DISRUPTION CAUSED
BY IMPORTS FROM HONG KONG. WE CHOSE THEREFORE THOSE ITEMS WHERE-
OUR OWN EXPORT FIGURES SHOWED SUCH SUBSTANTIAL INCREASES THAT IT
SEEMED THAT THESE WERE THE ITEMS MOST LIKELY TO BE CAUSING
DISRUPTION. WE ALSO TOOK ACCOUNT OF THE FIGURES GIVEN BY FRIEDRICHS
IN DECEMBER (PARA 4 OF BRUSSELS TELEGRAM 82 OF 1972 TO ME). SINCE
BILATERAL MEGOTIATIONS WERE NOT POSSIBLE THIS WAS THE BEST WE COULD
DO.
ON THE OTHER HAND, THE COVERAGE OF OUR POLYESTER/COTTON
ARRANGEMENT WITH YOU WAS THE PRODUCT OF BILATERAL NEGOTIATION IN
WHICH YOU DEMONSTRATED AN ACTUAL THREAT OF INJURY TO BRITISH
INDUSTRY.
WE SHOULD LIKE TO BE GIVEN CREDIT FOR DELIBERATELY INCLUDING
MEN'S AND BOYS' TROUSERS, ALTHOUGH 1972 EXPORTS WERE 6 PER
CENT BELOW 1971'S. WE DID THIS BECAUSE OTHERWISE THE GERMANS MIGHT
CLAIM THAT WE HAD LEFT OURSELVES AN OPPORTUNITY TO MAKE UP FOR THE
REDUCTION IN OUR SHIPMENTS OF COTTON TROUSERS BY SHIPPING MORE
POLYESTER/COTTON. (OUR SWITCH TO THE CONVERSION FACTORS AGREED
WITH YOU IN JUNE AND OCTOBER 1972 WILL ABOUT HALVE OUR COTTON
TROUSER SHIPMENTS TO THE SIX).
CONFIDENTIAL
/RESTRAINT LIMITS.
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