luss Luckey, CM

MIO PAPER ON UK TYXTILE FULICY IN EUROPE

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Miss Hall

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This is bring

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ent both by the moord of the Lueting 10 August in mich me mys, inter alis

"de entirely arged with. CT

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My Mr. Laz.

we should be wasonably arkwerd in tring

to make our alignment conditional on some movement in the Community a more liberal textile policy .. As to the form such a movement could take, Miss Elliott and I questioned whether "free circulation" was really the best bet ... It was not therefore apparent (as indeed Me Nicoll had argued) that

muld be able to outflank the less liberal countrine detences by menta of free circulation. To mizle be at lerat 3 veoful 3 = No a frontal »ttank and to ask for their quotas to be increased. Miss Lowne rallied to this view and Mr Ridley accepted it though we ngrend with him that we should still make a single Community market the orjective to be achieved, after a suitall2 monter of years.

The paper will bike this line and may also sumest shut £3 our starting point we should offer to start with anlatively small (80 quota and incmane it year by your as the French, and Italions had increly d textile imports."

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As I understand it from Mr Hope, the kind of proposal that CT have it in mind to make in Brussels is that the quotas of the Nine should be combined, and a modest addition зay 5 per cent made to this total. Within the total, there would be national coilings for each of the Nine. The UK ceiling of X metric to1.3, epivalent to our present quota level, would be romanded as the "eight" which other members of the Community would propensively rovn (or to s level for countmes with a sweller population than curs). You mould situation where the natinal ceilings added up to mich

Tore ti the or Comunity quots, but this would not give the developing countries any aŭlitional » chess since imports into the Nine would be atomped as seen added up to the Community quota level,

We (end I believe CRE1) have been assuming that "equalising the burden" meant porcusting our 5°C partners to take more, without ourselves taking any leer. But CT's proposal would do little more than relistribute the existing La alah harily pecoris utti the reference to TA

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In view of this rather fundamental divergence of view, I s sked Mr Hope to circulate soon as possible a draft outline of the proposals to be put forward in bressola, As there are likely to be only a few days between the 10 meeting and she meeting, I suested he should put round his prer in advance of the H10 mocting to give us time to consiler it fully. He will try to do trás.

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(Miss) CH Welch

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Mr. Scarlatt

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