DES DICTED

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(e) putting a time limit on bilateral negotiations

however unreasonable the importing country's demands (again this can only refer to Article 4 negotiations since Article 3 already has a time limit);

one can foresee the exporting countries saying "All this is unnecessary and unnecessarily restrictive. If you really have a case of market disruption, use Article 3. You are trying to change Article 4 so that under it you can impose "agreements" without ever demonstrating that you need them. We won't agree".

And so the arguments in the Textiles Committee will drag on in an atmosphere that will become increasingly unpleasant.

We think it is desirable that manufacturers, importers and exporters should know where the stand for 1978 as soon as possible but quite apart from that we are concerned that the UK and HK seem likely to be not just, as we have in the past, taking differing lines, but completely opposed to each other. That has always seemed to me something we should try to avoid if we can. It will of course be masked to some extent by the fact that in the meetings we are opposing the Community but it is now widely "known" (i.e. believed) that France and the UK are behind the attitude so far taken by the Community.

We honestly believe that a straightforward extension of the MFA is the best available solution: we cannot see that you need to to change the MFA itself, but rather the Community's use of ite

On 20 April I have to reply in LegCo to an Unofficial Member. I attach an extract from his speech. My difficulty is that I cannot reconcile what you said in your press conference here with what Mr. Meacher said in Parliament. I'm afraid there is no hope of doing it before 20 April but if you think it would be useful I would gladly come to London at short notice to discuss this fascinating subject.

It's length

I hope you won't find this letter too long. is proportional to the concern about this subject in HK. With fifty per cent of our exports, and of our manufacturing employment still in textiles, "the future of the MFA is the big topic, as John Stewart discovered when he was here a week or two ago. I am sending him a copy of this letter.

*We are not alone in this but

in some good company, I think,

Olivier Long told me that

this is what he said to Mr. Dell (& In Paris).

RES. RICTED

(Yours ever),

(D.H.Jordan)

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