Mr Gallagher

COTTON TEXTILE TARIFF:

TRANSITIONAL ARRANGEMENTS

78

1.

On Mr Bottomley's instructions I asked Mr Barrington to have a word with his opposite number in the Private Office of the Chancellor of the Exchequer. He did so and later reported that a decision would be taken shortly and the Treasury hoped to let us have a reply tomorrow, 14 May. Treasury Ministers were most reluctant to accede to the request for a place in the Finance Bill for the DTI's legislation. They might however be able to grant it if they could be assured that Mr Noble would pilot the appropriate section of the Bill through the House when the time came.

2. I passed the gist of the foregoing to the CT Division of the DTI this morning and suggested that they should invite their own Private Office to confirm that Mr Noble would be willing to act in this sense and, if so, to inform the Chancellor's Private Office.

3. I was later told by the CT Division that Mr Noble's Private Office were reluctant to make any commitment on his behalf. (He is now in Reykjavik.) He was already in disagreement with Mr Higgins about responsibility for various parts of the Finance Bill. I suggested that as the matter was urgent and important the DTI should consult Mr Noble if necessary by telegram or telephone at Reykjavik and seek his agreement to pilot this particular section of the Finance Bill through the House.

4. I will report any further developments. What seems clear is that we are on the point of obtaining a decision on this awkward matter.

13 May 1971

сс

Mr Laird (Hong Kong Department)

RESTRICTED

Moun

M E Heath

Commodities Department

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