CONFIDENTIAL

2

7.

In

[DEFENSIVE] (If it is argued that imports from

developed countries should also be subject to restraint)

some cases they are, eg Spain, Portugal. Key criteria is

whether suppliers are judged to be disruptive, or have the

potential to become so, across a wide range of products. There

are other examples of action being taken on an ad hoc basis,

eg against US synthetic fibres in 1980 when the dollar was particularly weak. Since then it has strengthened, and imports from the US are declining.

8.

[DEFENSIVE] (If there is discussion of post-1986

Too early to speculate about this.

arrangements)

CONFIDENTIAL

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