CONFIDENTIAL
PRESENCE OF OUR TEAM IN BRUSSELS WOULD ONLY INVITE STERILE DISCUSSION OR CONTINUATION OF BACK STAIR MANOEUVERING.
5. 1 THINK I CAN GIVE YOU THE ASSURANCE YOU SEEK IN CASE VE
AND I FEAR STILL HAVE MAJOR RESERVATIONS AFTER THE NEXT ROUND YOUR REFERENCE TO CUTBACKS ON 1976 SENDINGS MEANS WE ARE LIKELY TO SINCE THE PRINCIPLE INVOLVED IS SO DANGEROUS AND SO LIABLE OUR TEAM TO SPREAD TO OTHER MARKETS, IN PARTICULAR THE U.S.. WOULD NOT BREAK OFF AND PUBLICLY CHARACTERISE THE RESULTS AS UNACCEPTABLE AT THAT STAGE. WE WOULD FIRST SEEK A PAUSE FOR REFLECTION AND CONSULTATION. OUR PUBLIC STATEMENTS SO FAR HAVE BEEN PROVOKED BY THE UNORTHODOX BEHAVIOUR OF THE COMMUNITY SPOKESMEN WHOSE PRESS CONFERENCE STYLE OF NEGOTIATING HAS FORCED US TO TAKE PUBLIC POSITIONS. THIS IS CERTAINLY NOT OUR NORMAL
PRACTICE.
6. YOUR PARA,2 LAST SENTENCE, A TOUGH MANDATE TO PROTECT U„K AND OTHER E.E.C TEXTILE PRODUCERS IS UNDERSTANDABLE.
HONG KONG
HAS NOW AGREED TO MEET REQUIREMENTS IN THIS RESPECT, BUT THE CUT-BACKS FOR 1976 SENDINGS ARE EXPLICITLY STATED NOT TO BE FOR PROTECTIVE PURPOSES BUT FOR REALLOCATION TO THE COMPETITORS, AND I DO NOT SEE WHAT U.K AND E.E.C INTEREST THEY SERVE.
7. PLEASE CONSULT THE DEPARTMENTS CONCERNED ABOUT THE E.E.C'S PROPOSALS ON CATEGORISATION. MY PEOPLE INSIST THAT THE ABRUPT INTRODUCTION OF THESE NEW DEFINITIONS WILL CAUSE CHAOS, AND THAT TWO TO FOUR MONTHS OF COST STUDY AND DISCUSSION WOULD BE NECESSARY BEFORE QUOTAS UNDERSTANNDDAABLE TO AND WORKABLE BY ALL CONCERNED COULD BE INTRODUCED USING THE NEW CATEGORISATION. DO THEY AGREEE 7 DAVID JORDAN COULD BE MADE AVAILABLE FROM ABOUT WEDNESDAY FOR DISCUSSION WITH SAY SIR PETER CAREY OR SIR LEO PLIATSKY. WOULD THIS BE HELPFU ?
MACLEHOSE
FILES EID (E)
HK & GD
PS
PS/MR JUDD
PS/LORD GORONWY-ROBERTS PS/PUS
MR FRETWELL MR MURRAY
COPIES TO
MR HARRIS CABINET OFFICE
MISS MACFARLANE CRE1 DOT
MISS LOWNE CT DIV DOI
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