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biggest problem here may in the end be Turkey, with her severe foreign exchange crisis. But I also believe something might be possible, at least on an industry-to-industry basis.
b) India. India is the Community's second largest textile supplier (after only Hong Kong). The Indians have so far
refused to talk, even though the Community's initial offer to them is generous compared with other suppliers in a similar position in the EEC market, involving no cutback below 1976 levels. The Indians are still exercised about the treatment the Community has given them in the past year over their exports of handloom products, particularly shirts and blouses. It is quite conceivable that there will be no agreement with India and that unilateral measures will be necessary.
c) Brazil. The Brazilians are similarly refusing to talk. The Community's offer to Brazil, which is a dominant supplier for two products only, cotton yarn and cotton fabric, is already, in our view, excessively generous and is one of the main reasons why such large cutbacks have had to be asked from Hong Kong. Failure to reach agreement with Brazil could therefore be in accord with UK interests. The Commission argue that important Community commercial interesrs are at stake in Brazil but these are largely for Germany and, to a lesser extent, France.
d) Hong Kong. The Community's offer to Hong Kong is very tough. For most of the most sensitive products it involves large cutbacks below 1976 levels. The Hong Kong authorities nevertheless seem to realise that they must reach agreement with the Community and they have a great deal to lose from the imposition of autonomous Community measures. Hong Kong has just made an offer to the Community to cut sendings of the most sensitive products back to 1976 levels, thoug not below. We also know that the Community have negotiating reserves
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