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7. Following our meeting with the Japanese we again mot in Mr.Long's infon al group yesterday evening. Long himself Indicated the position reached in tho bilateral talks and his understanding was almost oxactly the same as ours. None of the other delegations had any comments or addition information to offer (although it was noticemplo tlist the EEC and membor statos were strongly represented).

8. No doubt you will have been discussing with Jordan and Jones the briefing for the next meeting of tho Cotton Textiles Committce. It sooms more or less the general view here that the question of non-cottons will not arise or will not play any prominent part at this next mooting. In that event, the suggestions put forward by ourselves and the EEO would simply rain

It seems on record and not bo further elaborated. that the Japanese, if and when they come to the point of asking Long to tackle the mattor, would much prefer that to be in a new working party and not in the Cotton Textiles Comittco. Their experience of the operatio.1 of the LTA since 1062 has led to considerable bitterne.so in their industry and any new restraints would, from their angle, look better presentationally if köpt quito soparato from the LA and its machinery. less, they realise that the decision on whether to extend tho LTA tôl quol, and if so for how long, will, in practice, bo much influenced by the outcome on the hon-cotton issue.

None the

9. There may be other views; but those pointers suggest that the Hong Kong line of having the non-cotton arrangements wrapped up in an extended LTA will not get much support. We shall have to work out our own linc

But on the face of it în consultation with Hong Kong. we would inve diffic lty in putting the U.K. voice behind the kind of solution suggested in peregraph 3 of Hong Kong telegram 854 when wo aro sccking carly, if not iranodiato, termination of the LTA itself. errangements for non-cottons written into en extended LTA would of course moon that any chance of torminating

This is a the LTA at an early deto would disappear. view which Long has argued consistently and strongly since the subject came up. Howevor, as tho Decombor

/nceting

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