CONFIDENTIAL
(to use the words of Haddon-Cave);
and that if
we are unable to give any concessions to Hong Kong
(judging from paragraph 6 of your minute of
7 December to Mr Grant, we are not likely to reach
this totally negative stage), we should be able
to demonstrate, with as much factual information
as we can, why the Hong Kong proposals would present
a serious erosion of the intent behind the
Government's decision. We would therefore find it
most useful if you could let us know fairly soon
how you envisage undertaking the preparatory work
for the resumed talks; and, while this is not
specifically on the agenda, whether you consider
we might be able to be more forthcoming at the talks
January on our own intentions towards formulating
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N.P. 4.
a textile trade policy, together with our partners
in the enlarged EEC, which takes account equally
of the interests of developing countries in
expanding their exports of textiles and of the need
of the textile industries here and elsewhere in the
Community to evolve on a basis of genuine competitiveness,
and of the right of efficient producers and their
workers to safeguards against disruptive imports.
I realise this is a longer term problem, but if we
could demonstrate to the Hong Kong delegation that
we now seriously intended to promote a textile
trade policy along the foregoing lines, this might
also help in softening the immediate effects of
our reversal on quotas.
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