DSR 11 (Revised)

DRAFT:

minute/letter/teleletter/despatch/note

FROM:

J A SHEPHERD

DEPARTMENT: ESTE)

TEL. NO:

SECURITY CLASSIFICATION

TO:

Top Secret

A J Lane Esq

Secret

ITP

Confidential

Restricted

Department of Trade and Industry

TYPE: Draft/Final 14-

Reference

Your Reference

Copies to:

Unclassified

PRIVACY MARKING

CAVEAT..

..In Confidence

SUBJECT:

1. At our meeting with Rex Browning on 7 February, I

undertook to let you have our suggestions on how we might

expand the scope of the DTI position paper with a view to

reducing to a minimum the areas requiring discussion at

EQS.

Enclosures-flag(s)...........

2. The main paper usefully sets out the implications for

the UK economy and our trading interests of implementing

Silberston's recommendations. But I believe that in

certain respects its analysis does not go far enough.

While I agree it is right to define clearly a UK economic

interest, our objectives cannot be set against that test

alone. As Rex Browning brought out, given that there are

now 95 low cost suppliers, many in the third world, there

needs to be further consideration of how an MFA renewal

in some form would fit in with other aspects of our

policy towards developing countries, both the LDCs and

the NICS and, in view of its enormous potential as a

textile clothing producer, China.

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