TNAG-0144-FCO40-180-Exports-of-textiles-to-United-States-of-America-1969 — Page 80

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iii) that Hong Kong has apparently agreed to a reduction

of nearly 50 per cent in the trade in anoraks, in spite of the fact that Swedish production doubled between 1965 and 1968;

iv) that no figures have been given to show whether growth was conceded on the cotton items which were under restraint. (The inference from paragraph 2 of the telogram is that some of the quotas have been substantially reduced by the inclusion within the quota ceiling of important items not previously subject to restraint);

v) that control has been extended to a wide range of

knitted cotton garments which are free of control in most other developed countries, including the United Kingdom. (This will obviously create great problems for the U.K.);

vi)

vii)

that no figures were given to show what level of restraint has been agreed for towels and how this compares with the previous trade. (We are under very strong pressure to reduce imports of towels from Hong Kong);

the so-called bench marks are meaningless without an indication of the effect of imports on domestic production. (We import a high proportion of our watches. So what?).

4. You should also know that, as we have just discovered, the Swedes have persuaded the Portuguese to restrict exports of man- nade fibre (i.e. rayon) blankets, thus confirming another of the forecasts we made last summer. This action will create great difficulties for us when the news gets out. We have for some time been under strong pressure to do likewise. Indeed, the principal manufacturer, lighans, used an opportunity on the platform at the Nottingham Conference to appeal to the Government to see that restraints were imposed in this particular case.

Mr. D. I. Dunnett (CRE-1)

{CRE-

ce: Mr. Carey (1.1)

Mr. Goldsmith (CRE-1) Mr. Magor (CRE-4) Mr. Jupp (1.1) Lir. Toms (CRE-2)

Mr. Kennis (CRE-1)

Miss Welch (I.1)

S. STEWART Ind.1.

2nd May, 1969.

Mr. Whitehead (F.C.0.) 3 copies