NOTHING TO BE WRITTEN IN THIS MARGIN

CONFIDENTIAL

with a stop-gap situation of what to do in 1972, and that

stop-gap therefore, whilst one/recognises the inter relationship

Whilst one three

therefore they

they argue that

between cotton and non-cotton textiles, we should

at of

are should keep separate, and not focus on now, a longer-term

multi-fibre policy. To the extent that a combination

of the suggested action for cotton textiles and semi-

hon-action for non-cotton textiles provides a solution

to the immediate pressure on the Government, the DTI

thesis is beguiling. The danger in it however is that

whilst looking at the short term, even while saying we

must as far as possible facilitate harmonisation in due

course with the EEC, the effect on any long-term policy

may be to produce yet another hiccup in this long bout

indigestion. 7. The Community can be said to have a

(? slightly restrictive) policy on cotton textiles, but

there is no Community policy on man-made fibres (although

some of the Six do have voluntary restraint

arrangements). To adopt the short-term could therefore

lead us into reacting in the medium-term to whatever

multi-fibre policy the EEC finally decide might be

right. The question is whether it would not be in the

broader interests of Britain, and particularly the freer

trade and benefit to developing countries posture we

would wish to take into the Community, to closely relate

what we want to do on stopgap to what we would like to

happen on multi-fibres.

hos

may consider

It is possible that Ministers will find this too

hypothetical in their current difficulties, and

certainly there would be much to be done, not least in

improving large gaps in our knowledge on what the EEC

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