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Mr Dodds (Commodities Dept)

COTTON TEXTILE QUOTAS

2.

Your minute of ö December.

I have no comments on the draft speech notes. As regards the GPS section (paragraphs 30-41) of the brief I would suggest:

(a) the addition to the third sentence of paragraph 38 of a reference to the fact that the US have so far in any case tuken no steps to get the necessary legislative cover for their GPS offer as a whole (because of the presumed hostility of congress in its present protectionist mood).

(b) I think it would also be preferable to omit or explain more fully the reference to Họng kong in the final sentence of paragraph 30. The inclusion of Hong Kong in this catalogue of restrictive measures and attitudes might give Mr Noble afalse impression of HMG's involvement in the question of Hong Kong and the GPS.

(c) As regards paragraph 41 I have to confess that I am not clear whether it is our intention to wait until 1 January 1974 to adapt to the Community's GPS; or whether adaptation by stages is contemplated. If the latter is a possibility perhaps paragraph 41 should read "We shall align to the EEC's version by 1 January 1974. .

(a) Further to (c) above I am also not sure what the understanding is between us and the ELC on what adaptation to the EEC GPS will involve. Paragraph 15 of the brief refers to the "possible application" of the Community's present GPS arrangements on colton textiles. Do we believe that this is an issue on which the Community expect to withdraw their present GPS concessions I wonder?

9 December 1971

Copies to:

Mr Morland (EID(1))

Mr Clewley (Hong Kong D)

KFX Burns

Trade Policy Department G 3/1 Tel G 49

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CONFIDENTIAL

DD 896639 140609 500M 7/71 GM 3643/2

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