}

Although the Pakietan Aide Memoire dated

3rd July has only just reached us the points in

it were taken into account. We are preparing a

preparing

reply.

TO CANADA ONLY

Canada has contractual rights to duty-free,

entry into this market for cotton textiles and

we realise that we must negotiate to secure a

waiver of these rights. On the other hand, Canada's

trade in cotton textiles has been built up almost

entirely since quotas were imposed first on India

and Hong Kong and later on other developing countries.

As you know, Canada has! a higher tariff on importe from the U.K. than we are proposing to impose on

her and she maintains quotas qa well on imports

from most developing countries. We hope that in

the circumstances they will consider our problem sympathetically.

You will wish to know for your own information that the textile council is preparing an anti-dumping

application against imports of printed cloth from

Canada

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