CONFIDENTIAL
THE POLYESTER/COTTON FIELD AND INCLUDE E.G. KNITTED WOOL AND ACRYLIC SWEATERS, PULLOVERS, ETC. WE ARE NOW STUDYING THE FIGURES INVOLVED IN DETAIL BUT THE PROBLEM OF SELLING ANY ACTION ALONG THESE LINES TO THE TEXTILES ADVISORY BOARD AND OUR INDUSTRY IN
GENERAL REMAINS A DIFFICULTY ONE.
4. PERHAPS THE BEST SOLUTION ALL ROUND, HOWEVER, WOULD STILL SEEM TO BE FOR THE COMMUNITY TO AUTHORISE THE BENELUX TO NEGOTIATE A REGIONAL ARRANGEMENT WITH US. IF THE BENELUX WERE TO AGREE TO THIS IT WOULD APPEAR THAT ONLY THE FRENCH, ITALIANS AND IRISH ( (AND, OF COURSE, THE COMMISSION) WOULD BE OPPOSED, BUT THESE ARE THE THREE MEMBER STATES WHO TAKE VIRTUALLY NO IMPORTS FROM HONG KONG FOR VARIOUS MORE OR LESS ILLEGAL REASONS AND IT SEEMS UNREASONABLE THAT THEY SHOULD BE ALLOWED TO DICTATE THE GAME IF, IN FACT, THEY REALLY WISH TO DO SO AT THIS STAGE.
5. WE ARE GRATEFUL THAT YOU MADE THE POINT ABOUT WIDER NEGOTIATIONS, WHICH IS WHERE WE FEEL THE EMPHASIS SHOULD REALLY BE PLACED AT THIS FOINT IN TIME, OBVIOUSLY WE WOULD PREFER TO DEAL WITH ALL POST-1973 TEXTILE ARRANGEMENTS WITH THE COMMUNITY TOGETHER AND PREFERABLY AFTER THE CONCLUSION OF A NEW MULTILATERAL TEXTILE AGREEMENT. AND EVEN IF A SEPARATE MANDATE FOR NEGOTIATIONS WITH HONG KONG ON MMF WERE TO BE AGREED IN THE REASONABLY NEAR. FUTURE, WE CAN SEE LITTLE PROSPECT OF CONCLUDING A SATISFACTORY AGREEMENT BEFORE CONSIDERATION WOULD ALSO NEED TO BE GIVEN TO THE FUTURE OF THE EXISTING COTTON AGREEMENTS.
6. YOU ENVISAGE TALKS ON THESE AS TAKING PLACE IN THE AUTUMN, AFTER THE CONCLUSION OF A NEW MULTILATERAL AGREEMENT. FOR COMMERCIAL REASONS WE FIND THIS RATHER LATE IN THE YEAR, ALTHOUGH WE RECOGNISE THE DIFFICULTIES OF DRAWING UP A NEGOTIATING MANDATE IN ANTICIPATION OF THE TERMS OF A NEW MULTILATERAL ARRANGEMENT, IF SUCH THERE IS TO BE. PRESUMABLY, HOWEVER, THESE SAME DIFFICULTIES MUST ALSO AFFECT ANY MANDATE IN RESPECT OF MMF RESTRAINTS EXTENDING INTO THE PERIOD OF VALIDITY OF THE NEW MULTILATERAL ARRANGEMENT. WE VERY MUCH TRUST THT
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/HONG