considering this and the rigures which it

contains and will let you have are comments

as quickly as possible.

But we fear that we

shall not be able to reach firm views on what

should be done in time for your talks with

Canadians this month. In these circumstances

we suggest that your line at those talks should

be to probe the Canadians position fully with

particular reference to following points:-

(a) Extent of injury to domestic industry

taking into account cetten as well as

non cotton items.

(b) which countries are causing the damage.

(c) To what extent restraints are already

imposed and 'at what levels.

(d) Further details of maximum levels

of restraint which Canadians would

find acceptable.

4. On basis of all this information you could

undertake to give urgent consideration to

Canadian case with a view to reaching rirm

before

decisions after current arrangement mentioned

in your paragraph 2(d) expires.

6. Meanwhile we are urgently seeking information

about the current position with regard to restraints

on Japanese exports to Canada which would seem

to be relevant.

I

(10382) Dd.392005154m (77 sorts) 1/685G.W.B.Ltd. Gp.863

/ 7.

xxxaxxukkaheed) XXXXuxxexxx1999

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