CONFIDENTIAL
2
(A)
WE HAVE DONE THIS ALREADY IN CONSULTATIONS HERE AND I SEE
NO POINT IN ATTEMPTING TO REOPEN THE ISSUES. SWEDES COULD
REASONABLY OBJECT TO REPETITION OF ARGUMENTS ALREADY THRASHED OUT.
(B) AS I MADE CLEAR IN MY TELEGRAM 339, I CONSIDER THAT EXISTING
RESTRAINTS SHOULD BE CONTINUED. A 3 OR 4 MONTH RESTRAINT
WOULD BE ADMINISTRATIVELY AND COMMERCIALLY UNSATISFACTORY TO US,
THE TRADE NEEDS TO BE ABLE TO PLAN AHEAD, DELIVERY DATES ARE
SUCH THAT WE CANNOT NOWADAYS DELIVER TO ORDER. THE TRADE HAS
COMPLAINED THAT 3-MONTH EXPORT AUTHORISATIONS DID NOT GIVE
SUFFICIENT TIME. FOR DELIVERY.
·
(C) I FEAR THAT (C) WOULD BE A TRANSPARENT MANOEUVRE THAT
WOULD SATISFY NO ONE: AS BOT SAID LAST SUMMER THERE IS LITTLE
DIFFERENCE BETWEEN EA'S WITH TRIGGER POINTS AND RESTRAINTS. TRIGGER POINTS COULD BE KEPT[? GP OMTD]SECRET AS THE SWEDISH GOVT
WOULD HAVE TO DISCLOSE THE TRIGGER POINTS TO THEIR TRADE ADVISERS
(AFTER THEIR EXPERIENCE WITH EA'S LAST YEAR THEY WOULD NOT ACCEPT
A PLAIN EA SYSTEM AGAIN FOR THESE ITEMS). AT THE SAME TIME WE
COULD NOT IN FAIRNESS TO OUR INDUSTRY ISSUE EA'S ON THE USUAL
FIRST-COME FIRST -SERVED BASIS IF WE KNEW THAT THERE WERE TRIGGER
POINTS AT A LEVEL WHICH WOULD ALMOST CERTAINLY BE REACHED WELL
BEFORE THE END OF THE YEAR. IN ANY CASE I THINK THIS SOLUTION
WITH ITS PROSPECT OF A FOURTH ROUND OF CONSULTATIONS LATER IN 1969
„WOULD CERTAINLY BE UNACCEPTABLE TO THE SWEDES. IF SO, AND THERE
WAS NO AGREEMENT, WE COULD ONLY EITHER-
(1) RESUME UNGESTRICTED EXPORT LICENSING ON 1 JULY, CHALLENGING
THE SWEDES TO IMPOSE IMPORT RESTRICTIONS, OR
() CONTINUE THE PRESENT SUSPENSION UNDER HEAVY CRITICISM FROM
THE TRADE WHILE WE THRASHED OUT THE POLICY ISSUES WITH YOU.
5. I AM SENDING JORDAN TO LONDON TONIGHT. HE WILL BE AVAILABLE
FOR DISCUSSIONS THURSDAY AFTERNOON AND FRIDAY TO PROVIDE ANY
CONFIDENTIAL
/FURTHER
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