CONFIDENTAL

-7-

inform Lord Melchett of the position reached over renewal of the

self-restraint arrangements, in respect of exports of steel to

the United States, by the Community steel producers and the

Japanese. The Community had put to the Americans the view that,

in the light of the expected Pritish membership of the Co-munity,

it was illogical that the British Steel Corporation should

continue to refuse to join in these self-restraint arrangements.

Mr Samuels agreed with my off-the-cuff reaction that the

British steel industry was not at the moment a particularly

important exporter (thought he said that for some special

steels they did export significant quantities to the United

States); and that it was still nearly two years before one

could hope for British membership of the EEC to take effect.

Mr Samuels said that his object would be to keep Lord Melchett

informed of what was being said and done rather than to press

him to undertake the same self-restraint obligations as the

Continental and Japanese industries had accepted.

29 April 1971

CONFIDENTTAT

1.8.0.1

JR A Bottomley

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