CONFIDENTIAL
Textiles
3. Turning to the problem of textiles Dr Owen said that he hoped
they could talk frankly:
Britain had had great difficulty with the Multi Fibre Arrangement
The Community had been bound to a negotiating position but the
Commission was now showing signs of relaxation not only with
Portugal; which by herself would have presented little difficulty,
but with other countries also. Britain was insisting that the
there were very great problems and
Community keep to the agreed mandate;
question of principle involved.
there was an important
Britain was aware of the Portuguese
sensitivity on this matter and bilateral talks had been held.
But actual negotiations were for the Commission
could find some adjustments it would help.
if Portugal
4. Dr. Sa Machado said he understood the British difficulties.
But the textile industry in Portugal employed 30% of the active
population, mainly in the north of the country where the Communists
had not made significant inroads.
The inability of the Communists
to extend their influence from the south of the country was the
reason for the success in establishing and retaining democracy
The Communists were trying to improve their image in the north
and were taking advantage of the situation in the textile industry.
It was a real political issue and, even if they understood the
Eritish problems, they dared to ask for special understanding,
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CONFIDENTIAL
/Dr Owen