explaining that the position in the Swedish textile

industry was getting worse he said that they wanted

to extend the existing agreement for a further period.

They do not, he said (and I am assured that he spoke

categorically, as to make it difficult for the

Swedish delegation to depart from the terms he used),

propose to ask for export restraint on any non-cotton

items, apart from those already covered by restraint You

bran

A

agreements. He said that he had sent y a formal

request for consultations and handed over a copy of

the memorandum to which I have referred. He added

that more detailed statistics would shortly be sent

to you with copies to ourselves, through the Embassy

in Stockholm.

4.

Whatever designs the Swedes may entertain for

the future it looks as though there are good grounds

for believing that the next round of negotiations will

not raise the problems of new restraints, on your

export trade.

NOTHING TO BE WRITTEN IN THIS MARGIN

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