3.

In order to obtain agreement of all

Whitehall Departments concerned, it has been

necessary to amend paragraph 9 of the despatch

to the effect that you will keep us informed

of prospective and current negotiations with

other countries. In this connection I would

specially mention the matter of negotiation

of a restraint agreement with the U.S.A. over

non-cotton textiles. The situation at present

is not clear in that we do not know whether

America will be prepared to negotiate an

agreement with you but,should you wish to

open negotiations with America in regard to

non-cotton textiles, you should give us prior

notice of what you intend to do so that we

can obtain agreement at this end. You will1

appreciate that the trade policy of H.M.G. is

much involved in regard to this matter.

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