CONFIDENTIAL
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3. THIS CONSIDERATION ASIDE, WE ARE LOTH TO COMMIT OURSELVES
TO EARLY JULY (EARLY JUNE IS COMPLETELY CUT) BECAUSE:
(A) EVEN IF WE CANNOT GET THE ASSURANCE WE SEEK REGARDING
RESPECT FOR THE PRINCIPLES OF THE C.T.C. WE MUST TRY TO NARROW
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THE COVERAGE AS MUCH AS POSSIBLE AND FOR THIS WE SHALL WANT THE
PROMISED PRODUCTION AND CONSUMPTION FIGURES IN GOOD TIME SEMI COLON
(B) WE SHALL ABOUT THAT TIME BE PREPARING FOR OR INVOLVED IN
RENEGOTIATION OF TWO RESTRAINT AGREEMENTS EXPIRING ON 30TH
SEPTEMBER (NORWAY AND CANADA) AND IF, AS ERNST IS REPORTED IN
PARAGRAPH 3(F) OF GENEVA TELEGRAM 25 AS ENVISAGING, THE NEW
HONG KONG/EEC AGREEMENT COULD START FROM 1ST JANUARY 1971,
IT WOULD BE UNWISE AND UNNECESSARY TO OVERLOAD OURSELVES IN JULY.
(IT IS ODD INCIDENTALLY THAT ERNST SHOULD ENVISAGE THIS STARTING
DATE 'IF WE COULD NEGOTIATE THE BASIS BEFORE 30TH SEPTEMBER')
SEMI COLON
(C)
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ADDITIONAL TO (B), WE WOULD BE ADVISED NOT TO BE TOO
COMMITTED IN JULY UNTIL WE SEE WHAT, IF ANYTHING, HAPPENS ON THE
US/JAPAN M.M.F. FRONT IN JUNE.
FCO PLEASE PASS PRIORITY BRUSSELS AND ROUTINE TO GENEVA, UKDEL EEC,
BONN, PARIS, THE HAGUE AND ROME.
SIR D. TRENCH
[REPEATED AS REQUESTED]
INTERNATIONAL TRADE DISTRIBUTION
H.K.D.
COMMODITIES D.
F.E.D.
AMERICAN D.
W.E.D.
CONFIDENTIAL
ADDITIONAL DISTRIBUTION H.K. INT. TRADE
COPTES TO:
MR. D.I. DUNNETT B.O.T. MR. A.T. GREGORY MINTECH.