TNAG-0142-FCO40-178-Long-term-policy-on-International-trade-in-textiles-1969 — Page 156

ONFIDENTIAL

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other importing countries

as is virtually

certain - were not prepared to go along with this, we should work towards amendments to the

LTA designed to provide some assurance that it wald be henceforth used in a more liberal way. We should have to tread delicately since we are not in a position to accept that our own quota arrangements should be made anymore liberal in the period from September 30th, 1970 to

December 31st, 1971.

Because of this attitude on cotton textiles,

and for the reasons summarised in paragraph 26 (ii) above, we should resist any proposel by

the USA for the extension of the Agreement to

non-cotton textiles."

Paragraph 29 Introduce a new opening sentence and revise the

existing first sentence to read as follows:-

"It may well become clear during the course of

the discussions that the U.S. must abandon hope

of getting the Agreement extended to cover non-

cotton textiles, and the developing countries will almost certainly show a tendency to dig

their toes in over the need for and terms of any

extension to the LTA. This would give us the

opening to say, at a tactically appropriate time

that we do not regard the present position or

the prospects as satisfactory

11

Paragraph 29, line 12 After the word "unrealistic" insert the

following words in brackets:

"(This point must be presented with care to avoid

giving the U.S. any grounds for using it So

support their claim for a straight extension of

the ITA to cover non-cotton textiles.)"