COVE 16-77

TO MEMBERS OF THE TEXTILE WORKING PARTY

Relerence.

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Mr Holmwood Cabinet

Office

Mr Hall EID/FCO Mr Ingram CRE 1 Mr Goodfellow HKIOD/FCO

UK TEXTILE POLICY IN EUROPE

Following the discussions in the Official Committee on Europe last month of the line we should take on alignment to the EEC's GSP on textiles, the DTI has been asked to prepare a paper for the Committee to consider before the next meeting of the GSP Working Group in Brussels (12 September.) Cabinet Office would like to distribute the paper next week, so your comments on the attached draft text would be welcome before the long weekend.

Since one of our principal concerns is that GSP on textiles should not be considered in Brussels in isolation from textile policy in general, we have drafted this paper to show where the GSP issue fits in to the broader picture, and given it an appropriate title. Much of the text comes from the draft of an earlier paper for EU(0), concerned with tactics for achievement of our aims, which it was decided in the end, on advice from UKREP Brussels and others, not to submit.

Much more could have been said about the detailed deficiencies of the EEC's GSP on textiles, but the need for brevity induced us to cut it out. We are also keeping in reserve Mr Lam's idea that we might offer to make gradual progress from nil to the levels of GSP tariff quotas thought appropriate for us, timed to coincide with and conditional upon gradual progress by the Community from quantitative quotas divided up like a cake into national shares to a system of genuine Community quotas safeguarded by national sub-limits corresponding to at lowest the share of low-cost imports which each Member State according to its size should in our view be prepared to accept.

L.Clowne.

MISS L L LOWNE

CT Division 1

Room 2035 M/T

834 4422 Extn 459

22 August 1973

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