(1)

(8)

(h)

play the situation slowly; | give no encouragement

to the U.S. to believe the U.K, would contemplate

export restraints;

emphasise the difficulties;

and be prepared to listen.

The Prime Minister, the Chancellor and the President

of the Board of Trade were briefed to speak on these

lines during the President's recent visit to London.

We do not know what transpired.

While in the E.E.C., the U.S. party had general

talks on this subject in which they were told that

the Community did not like quantitative restrictions

which would involve going back on what had been

agreed in the Kennedy Round. The Americans took

the line that they did not like q.r.s either and

therefore preferred a multi-lateral export limitation agreement (note: after references to 'voluntary'

arrangements - see (c) the U.S. line seemed to be

reverting to the C.T.A. concept extension idea -

see (a) of the election promise).

Our latest information indicates a growing awareness in the new U.S. Administration of the problems and

costs which could be involved in fulfilling the

President's election promise; and that the manner and substance of an eventual approach to exporting

countries is still undecided.

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