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TO ROUTINE UKREP BRUSSELS TELEGRAM NO 2029 OF 2 NOVEMBER 1977. AND TO MEXICO CITY.
MFA BILATERAL NEGOTIATIONS: MEXICO.
THE MEXICAN MINISTER FOR TRADE CALLED ON THE SECRETARY OF STATE
FOR TRADE ON 27 OCTOBER. HE WAS ACCOMPANIED BY GARRIDO (HEAD OF MEXICAN NEGOTIATING TEAM ON THE MFA). IN A VERY SHORT EXCHANGE
GARRIDO COMPLAINED ABOUT THE COMMUNITY'S PROPOSED QUOTAS ON
MEXICAN COTTON YARN AND COTTON CLOTH. HE ASKED FOR THE UK'S
HELP IN GETTING IMPROVED OFFERS FROM THE COMMUNITY, MR DELL
MERELY NOTED THE POINTS MADE AND EMPHASISED THE SERIOUS DIFFICU-
LTIES OF THE UK TEXTILE INDUSTRY. GARRIDO THEN LEFT TO RETURN
TO GENEVA. (HE HAS SAID HE WILL NOT RETURN TO BRUSSELS UNTIL THERE IS A BETTER OFFER FOR MEXICO). COMMENT.
2.
GARRIDO WAS CLEARLY NOT SURPRISED TO GET NO POSITIVE RESPONSE
TO HIS REQUEST. WE CONSIDER THE COMMUNITY'S INITIAL OFFERS TO BE
ENTIRELY JUSTIFIED AND WITHIN THE TERMS OF THE MANDATE, FOR
COTTON YARN, MEXICO (WITH 0.46 PERCENT OF THE EEC MARKET) IS JUST OVER THE THRESHOLD FOR SPECIFIC RESTRAINT WITHIN THE OVERALL
LIMIT. GIVEN THE EXTREME POLITICAL SENSITIVITY OF COTTON YARN, THERE CAN BE NO QUESTION OF EXEMPTING MEXICO FROM RESTRAINT.
THE GROWTH RATE OFFERED FOR THE EEC IS 0.5 PERCENT BUT THE UK IS STILL PRESSING FOR ZERO GROWTH. FOR COTTON CLOTH, MEXICO HAS
0.8 PERCENT OF THE EEC MARKET AND IS BEING OFFERED ANNUAL GROWTH
OF 0.5 PERCENT.
OWEN
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