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Telecon Secretary Stans 3/13/70 12:30 p. m. K: I wanted to tell you about the talk I had this morning with Shimoda. I was very tough. I told him our people considered the last Japanese aide memoire an insult and totally useless as a basis for discussion. I said we were going to make no counter proposal and we were going to break off negotiations. I told him that would be done Tuesday. Shimoda asked me if this was an ultimatum. I said no, an ultimatum is when you ask somebody to do something; we're not asking for anything, we're just telling you. I said on Tuesday we will break off negotiations and tell our textile people to seek recourse in Congress. I said the President is outraged. He said 'this will put our government in an impossible position. 1 I said that's your problem. And he said 'I guess we better get busy. I Now Maury, would you just make sure State doesn't do any crying and weeping about this? S: Yes, I've told them not to do anything. There has been meet- ing after meeting among labor and industry. And there will be a storm. But that will be to our advantage; it will be read in Japan. Mills believes the statement about unwillingness to trade partners for this will be read by the rest of the world. He believes that a statement that Japan would be unwilling to negotiate voluntarily an agreement will bring pressure from other countries on them to negotiate. Okay, I will tell you what happens on Tuesday. K: Good.

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