PRIORITY CYPHER/CATH
GP5230
FM UREP BRUSSELS 241548Z
[STRICTED [FRAME]
RESTRICTED
TO PRIORITY FCO TEL NO 5782 OF 24 NOVEMBER.
"
COTTON YARN - RETENTION OF RESTICTIONS BEYOND 1 JANUARY 1974.
W/1/2
WE WERE MOST GRATEFUL FOR SIGHT OF THE SUBMISSION, HAVING STUDIED IT,
WE AGREE ENTIRELY WITH THE COMLCUSION THAT OJECTIVELY THERE IS NO
CASE. IF EVER THERE WAS AN ARGUMENT BASED ON THE FORBIDDEN
OF A THREAT THE SECOND PARA ON PAGE 2 IS IT.
THREAT
2. WE DISAGREE WITH THE NOTION THAT PHASING OUT CAN BE SHOWN TO BE A REAL LIVE EXAMPLE OF THE THREE YEARS BY STAGES RULE, THE CASE
FOR RESTRICTION IS SO INSUBSTANTIAL THAT OBSERVATION OF THE HARMLESS
EFFECTS OF A THREE YEAR PHASING PROVES NOTHING. AND IT DOES NOT HELP
TO PARADE SUCH AN EXAMPLE OF OUR SAGACITY WHEN THE PRODUCT IS NOT ONE THAT THE OTHER MEMBER STATES FEEL A NEED TO RESTRICT (WE ARE
PUZZLED BY THE REFERENCES TO HIDDEN RESTRICTIONS).
3. WE WOULD FEEL SOME SCRUPLE ABOUT CALLING A THREE YEAR PHASING A
**COMPROMISE". IT IS MORE PROPERLY THE ACCEPTANCE OF THE INDUST-
RY'S CASE - IT IS HARD TO BELIEVE THAT THE SPINNERS SUGGEST THAT THE
RESTRICTION SHOUL STAY ON IN FULL UNTIL 1976 AND THEN TO BE TAKEN
OFF AT A STROKE.
4. WE WILL OF COURSE IF INSTRUCTED BATTLE FOR A FURTHER DEROGATION,
WE DO NOT SHARE THE VIEW THAT WE CAN EXPECT SOME HELP FROM OTHERS.
BUT DO WE REALLY WANT TO SPEND POWDER AND SHOT ON THIS WHEN THERE IS
SO MUCH ELSE OF FAR GREATER POLITICAL AND MATERIAL IMPORTANCE
IN THE TEXTILE SECTOR? NEW LTA, NEW BILATERALS, HONG KONG IN GPS, THE DURDEN SHARING/FREE CIRCULATION SYNDROME AND ALL THE LITTLE LOCAL FLURRIES LIKE THE TURKISH QUOTAS, THE CYRPUS QUOTAS AND SO ON.
WOULD IT NOT AFTER ALL BE AN IDEA OT FIGHT THE CASES WHERE WE CAN
FEEL THAT WE HAVE ARGUMENTS USABLE IN COMMUNITY FORA AND NOT
CASES WHERE BOTH THE OBJECTIVE FACTS AND COMMUNITY DECISIONS
ARE AGAINST US.
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