CONFIDENTIAL

-2-

6. AS REGARDS COTTON TEXTILES WE DO NOT PROPOSE TO TAKE A PROMINENT OR INITIATORY ROLE. IF THE GERMANS PUT FORWARD PROPOSALS FOR LIBERALIZATION OF THE CTA ON LINES THEY HAVE INDICATED WHICH WE BELIEVE INCLUDE AN ANNUAL GROWTH FACTOR OF 20 PER CENT SWITCHING OF UNUSED QUOTAS UP TO 50 PER CENT AND EXAMINATION OF PRESENT CATEGORIZATION WE SHALL GIVE THESE PROPOSALS WHAT SUPPORT WE CAN BEARING IN MIND OUR OWN INABILITY TO OPERATE THEM OURSELVES.

STEWART

INTERNATIONAL TRADE DISTRIBUTION:

HONG KONG D.

ADDITIONAL DISTRIBUTION:

HONG KONG INTERNATIONAL

TRADE.

CONFIDENTIAL

2.

DDDDD

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