CONFIDENTIAL
4.
that we believe the scheme should to a considerable dégree mitigate the effects of our EEC entry for many Commonwealth ldc's.
The Governor's next best solution on textiles in the EEC scheme would have been for us to press the Community to exclude S. Korea and Taiwan. The counter- productive effects upon the U.S. Administration of any such pressure on our part were made clear enough in the course of the meeting, and the Governor did not revert to this idea with any force in the summing up (end of para. 5) If however you thought it advisable in the submission to cover this fall-back long Kong request paragraph 3 of the record contains arguments which effectively sink it.
5.
You may already have action in mind of the sort suggested here. If not, I regret that a chapter of accidents has delayed our bringing it to your attention.
Lu Butter
(R. G. Britten) Trade Policy Department 18 December, 1970
CONFIDENTIAL
Page 60Page 61