"decimation", categorisation in our case boing intended to avoid
the decimation of particular sectors of our market. The previous
Severs injury to particular dectors of an market
degree of categorisation proved insufficient to avoid this and
the situation was so slims because a state of disruption was threatening to become a state
of decimation, we asked you to co-operate in affording us some
measure of relief in return for compensation in other sectors.
We are grateful to you for meeting our request.
6. I realise, of course, even on the assumption that the case
for relief is conceded, that there may be considerable scope for
argument about the degree. Some of the comments in your despatch
show, clearly enough, that you consider the new restraint levels
on sheets and sheeting to be more severe than the facts warrant.
This is a matter of judgement. I believe that, to give some
significant relief to the domestic industry, we were obliged to press you (and the Indian Government) to accept substantial cuts
in exports of sheets and sheetings to us. We did not reach this
conclusion lightly or in haste.
The
7. I have one point of detail to make on your paragraph 21.
Aide Memoire did not allow for any growth in the new sheeting and
sheet categories and no concession was offered in the course of the
negotiations. However, it was subsequently decided to offer 3
per cent growth for 1970 in return for an immediate standstill on
the issue of export authorisations. This offer was communicated
to the leader of your Delegation, who, I understand, accepted it
as part of the package to be put before the Cotton Advisory Board.
We had not previously allowed any growth for Portugal, nor did we
subsequently allow any growth for India, so that in the circumstances
I regret that there can be no question of our allowing any growth
above 3 per cent for Hong Kong.