6.

5. In its raper, the Commission has put forward a number of wideo-reaching proposals which will be connected with the

new textile policy. Particularly important will be the

ideas on a new industrial policy for textiles and for

reform of the Generalised Scheme of Preferences for 1979.

We look forward to detailed Commission proposals on these

subjects, which we will examine with great care. In the

same way, we will give careful study to the more detailed

sections of the Commission proposals not directly related

to the establishment of textile quotas, ie. those on surveillance, classification and rules of origin. In making

all the above reservations, the UK is firmly convinced

that any reasonable means of achieving the Community's

agreed objections must be given a try. The Commission's

logical and coherent approach looks a sensible way of

achieving the desired ends. It will only be at the end of

the negotiating period, which we accept should be firmly

set for 30 November, that the UK and the other Member States

can judge whether it has achieved the Community's objectives.

Subject to the resolution of the problems we have mentioned,

therefore, the UK will be prepared to give the Commission

the necessary authority to begin the bilateral negotiations.

7. The Commission have already given some publicity to

their approach. They have emphasised the fact that the

Community will attempt to give 6% growth over the totality

of their textile imports to all the supplying countries

concerned. We understand the desirability of such a

presentation to help in the bilateral negotiations but it

must be underlined that even a presentation is unfortunate

for our domestic textile industries.

it

It sounds too much

like a continuation of the existing IFA arrangements. The

real nature of the Commission's proposals therefore needs.

to be explained to Community industrial opinion.

This

/Council

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