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2

6.

Unless the BOT can persuade the S. of S. that the issue warrants such a direction being given to the Governor, we shall have to apply the growth factors provided for in the Heads of Agreement.

7.

Personally I should not have thought that the issue was of sufficient importance to warrant the Governor being over-` ruled. Exports in the current year have been pretty sluggish, as the BOT can see from our regular returns. I enclose a copy of the latest one, from which you can see that in the first 9 months of this year exports in the categories concerned have gone like this :

Limit

Exports to

Balance available to 15 October 1969 31 December 1969

(Sq. Yards)

Cat. 7

Loomstate sheeting

11,800,000

5,442,870

6,357,130

and shirting over 60" wide

Cat. 12A

Finished sheeting etc. over 60" wide

5,700,000

3,415,580

2,284,420

Cat.14

Bed linen

3,300,000

1,070,033

of which sheets

1,000,000

120,527

2,229,967

879,473

8.

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Furthermore, total UK imports in January/June 1969 are well down as compared with 1968, as figures supplied by the BOT show. Table attached. At the same time UK production in the first six months of 1969, although it is down from the same period in 1968, is above 1967 figures, the last full year of those on which Stewart's 'market disruption' case was based (see table attached), so there's no indication there of grave injury to the British manufacturers and even if there was you will recall from the consultations last year that it could just as well be due to the growing popularity of the knitted sheet,

Yours

Dario

(D.H. Jordan)

W.S. Carter, Esq., C.V.O., Foreign and Commonwealth Office, King Charles Street,

London S.W. 1,

ENGLAND.

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I'm thinking

to

now of coming Cottrar

London after my

talks wita

Benelux mi the

in the week

Hague, which are 17-21 Nov.

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