· CONFIDENTIAL
-2-
TELL THE PORTUGUESE THAT HMG IS FACING A CRITICAL SITUATION WITH THE
DOMESTIC INDUSTRY ON THE TARIFF AND THAT IT WOULD NOT BE IN THE INTERESTS OF EITHER COUNTRY IF PORTUGUESE EXPORT THIS YEAR INCREASED
TO A LEVEL SIGNIFICANTLY IN EXCESS OF THE CONFIDENTIAL QUOTAS WHICH
WERE IN FORCE UNTIL RECENTLY. COMMONWEALTH GOVERNMENTS WILL NATURALLY
EXPRESS STRONG DISSATISFACTION THAT WE ARE PROPOSING A TARIFF ON
THEIR EXPORTS WHILE MAINTAINING DUTY FREE ENTRY FOR PORTUGAL,
STEWART
INTERNATIONAL TRADE DISTRIBUTION
COMMODITIES DEPT.
CONFIDENT IAL