Reference
12.
prepared over the weekend demonstrating the weakness of the Swedish case on these and other items. It is inevitably detailed.
It is unfortunate that the discussions are to be held in Stockholm. It is evident from what happened in the meeting in Hong Kong that the U.K. must be represented authoritatively at all discussions outside the cotton field and that such discussions should if possible be held in Londen. We need to consider whether there is stil time to do this. On the substance of the matter, my view is that we should avoid any commitment to extend the existing controls on non-cotton items for another year, if necessary by agreeing to prolong the restraints for three months, until end-September. This would give us time to find out whether and to what extent the Americans will carry out their threats. We must in any case avoid at all costs an extension of controls to We should (i) additional non-cotton goods and (ii) knitted goods. re-examine the existing restraints on cotton goods with a view to the elimination of (iii) those which we agreed to last year only as a douceur and (iv) the one knitted item: and we should strongly rogist new restraints.
13. I understand that you intend sending me a draft telegram to Hong Kong setting out your view of how the situation should be handled. I attach a draft which may or may not prove to be on the same lines. I suggest that we meet tomorrow afternoon at 3.0 p.m. to discuss the matter with representatives of the F.C.O. and in view of the urgency I am sending a copy of this Minute and the suporting papers to them direct.
S. STEWART, Ind. 1,
2nd June, 1969.
Mr. 0.1. Kemmis, (C.R.E.1)
copies to: Kr. P. Carey (1.1)
Mr. R. Goldsmith (C.R.E.1), Mr. V.S. Carter (F.C.O.) Kr. Whitehead (F.c.o.) Hr. F. Toms (C.R.E.2), Miss C. Welch (I.1)