نے الله نه

2

further with the Foreign and Commonwealth Secretary. If

they could reach agreement on his proposals the Committee

endorsed them. If agreement could not be reached, the

Secretary of State for Trade and Industry should raise

the matter in Cabinet.

5. The Chancellor of the Duchy of Lancaster opposes

any use of the EEC argument as a basis for the imposition

of restrictions on the Commonwealth at this time.

6. A decision is urgent because the affirmative

resolution on the tariff order is to be debated next week,

probably on 1 December, and it will be difficult, if not

impossible, to avoid dealing at that time with the question

of quotas.

Recommendation

7.

The issue is essentially whether we are to go back

on the statements made to India and Hong Kong. I therefore

recommend that if Mr Davies raises the question, the

Secretary of State should say that we cannot simply go

back on these statements. The right solution is to state

on 1 December that we shall proceed as planned, relying

on tariff protection only and being ready to give further

protection, as we are entitled to do, if trade is

CONFIDENTIAL

/disrupted.

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