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TRADES UNION CONGRESS

GENERAL SECRETARY: RT. HON, LIONEL MURRAY OBE

31 MAR 1977

ALLOCANICHE F

CONGRESS HOUSE... great rusSELL STREET · LONDON WCIB 3LS

Telephone 01-636 4030

March 28 1977

Telegrams TRADUNIC LONDON WCI

RECEIVED IN

REGISTRY Nɔ, 12PT

Economic

-5 APR 1977

ÖUR REF

ME 1313

کیسے اكم

Rt Hon Dr D Owen MP

Secretary of State for Foreign

& Commonwealth Affairs

HM Diplomatic Service Foreign and

Commonwealth Office

Downing Street SWLA 2AL

Dear Dr Owen

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YOUR REF FOR KING SOON 1 EDES

Advice via-Mydyssey fur sons to reply

Renegotiation of the Multi-Fibre Arrangement

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I am writing to you on behalf of the TUC Textile, Clothing and Footwear Industries Committee to express concern over the failure of the European Community to reach agreement on their mandate for discussion at GATT on the future of the Multi-Fibre Arrangement (MFA). In summary form the. views of the TUC were set out in paragraph 63-68 of the 1977 TUC Economic Review.

Following discussions with the TUC and with employers in the textile and clothing industries the UK Government is: aware of the need to renegotiate the terms of the MFA and has formulated its proposals aacordingly. The failure to agree a mandate with other member countries of the EEC could indicate some reluctance on their part to accept the- UK Government proposals for renegotiation.

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The MFA as presently formulated includes a number of weaknesses which, if they continue unresolved, are likely to prove very damaging to the UK and other economies in a. similar position. In particular the basis of the MFA is the negotiation of bilateral-arrangements with major suppliers. The relative flexibility of textile and clothing production means that such bilateral controls can be avoided,

and in some cases evaded, by the rapid growth of new

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