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items and could not agree to a restraint by Hong Kong.
Mr. Hughes suggested that the Swedes might perhaps be prepared to
settle on the first three items alone, but Mr. Jordan said he did not
feel he could agree to negotiate on this basis without first
consulting Hong Kong.
Mr. Carey said he must make it clear that an agreement in Stockholm
would make it very difficult for him not to recommend to the Fresident
some form of restriction by the U.K. Ind. 1 would not like to make
like
such a restriction discriminatory and this would, of course,
reversal of policy and would mean that the U.K. would have to change
its thinking on textiles generally. He would very much regret this
be a
as he considered it could be against the U.K. overall interests.
Of course, he could not say whether or not the President would be
prepared to accept such a recommendation.
Mr. Jordan said he could not understand why the three extra items on
which the Swedes had requested restraints should have such far-reaching
effects.
Mr. Carey replied that increasing pressure from the U.K. industry
for the past twelve months had focussed attention on these three items.
The U.K. industry watched very closely indeed every step taken by other
countries in the textile field.
Mr. Hughes asked Mr. Jordan if he would be prepared to go to Stockholm
and negotiate a firm agreement on the continuation of the two existing
restraints plus a new one on Shirts and to refuse restraints on
Blouses and Underwear on the grounds that they were not sufficiently
strong cases. If the Swedes would not drop the last two items he
should withdraw the whole offer.
Mr. Jordan accepted this proposal, but said that he would prefer that,
whilst making it clear that if the Swedes were not prepared to drop
these two items, he would have to refer the whole matter back, he should
find out on what level the Swedes might be prepared to accept restraint
/on