25...
of restraint on those items which are at present not subject
And
to restraint. o, on the other hand, you have re-grouped the categories in the current agreement in such a way that we have found it impossible to assess the effects of the restraint levels you have proposed. We do not know whether, for any particular item in your proposal, the limit you have proposed represents an improvement or a cutback or a standstill in respect of that part of it which is at present subject to restraint, in relation to the 1977 limit.
In one case, knitted crated дворо to the Benelux, you have told us that the 1977 restraint level has been included in your proposed level for 1978. Can ̄`· you tell us whether this is the case in respect of all other items or parts of items in your proposal which are at present subject to restraint? If not, then how are we to judge whether or not these proposed limits involve further departures from. the MFA?
76.
I apologise, Mr. Chairman, for the length of my response but it seems important to me to draw together various threads
of the discussion and to make quite clear to you why we think that your basic philosophy will not. achieve what you want it to achieve, why we find your highly discriminatory proposals for Hong Kong so objectionable and why we think that most of the veryve things you asked me to do, do not represent reasonable. departures from the MFA These things are on the debit side." "On the credit side, you will..have seen from the effort we have made on the statistics available to us that we recognised the. difficulties faced by the Community. We have never denied that these difficulties existed. We have told you that in respect of all the "politically and economically sensitive" items except one, we are prepared to continue restraint even though we feel that the case for some is not fully substantiated.
77.
As I warned yesterday, it is impossible for me to
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react constructively on your proposals on other items for which you have suggested limits. I have something to say on this as a contribution to overcoming what might be a serious stumbling block unless there is some flexibility on both sides, but I will.