I

115

Ndii

Mr Royle

RECEIVED IN

REGISTRY No. 51 -6DEC 1971

+KK

4/548/3

COTTON TEXTILES

3/12.

bet.

In Jabar

EL

1. The Secretary of State for Trade and Industry has to

answer two Parliamentary Questions on Monday, asking whether

quotas are to be maintained. The DTI have heard that the

decision to retain quotas has now become known to the press

and is likely to appear on Sunday. Mr Davies would therefore

like to announce the Government's decision to maintain quotas

on Monday.

2. I have told the DTI that in my view the answers given

on Monday should not go beyond a statement that we are having

discussions with overseas suppliers and that he hopes to make

a statement very shortly. The substantive statement might

then be made on Tuesday if an opportunity can be found.

3.

This is obviously an unsatisfactory course from the point

of view of the DTI, but I do not think we can decently announce

the decision on Monday when that is the day we are receiving

the Hong Kong Delegation. Moreover, if the need to discuss

this question with foreign governments is brought out in the

House, it should do a little to remedy the damage done by our

abrupt reversal of earlier assurances

C

though the precise

phrasing of answers will need to be carefully considered,

since we must not pretend that we are engaging in consultations

CONFIDENTIAL

/when in

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