CONFIDENTIAL

circumstances such a proposal on their part. The Americans have told us that they do not want to see any attempt at

extensive amendment of the L.T.A. since this might mean

'opening Pandora's Box"; we have told them that our attitude would be as indicated to the Germans.

5. As far as our own growth commitment is concerned, we are committed to giving 1 per cent in 1970, and will be prepared to do the same in 1971.

Conclusions on Cotton Textiles

6.

(1) We should not take any initiative to propose liberalisation of the L.T.A.'s present provisions, but, if pro- posals of this kind are put forward by the Germans or others, we may support them, while making it clear that we are not in a position to operate more liberal provisions ourselves.

(11) With regard to Article 2, we should discuss with the Hong Kong representatives, prior to the Committee session, the extent to which they can usefully press for its modification.

Non-Cotton Textiles

The delegation should be guided by the telegram of 11 December to Hong Kong on this subject.

CONFIDENTIAL

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