TNAG-0152-FCO40-188-Exports-of-cotton-textiles-to-Canada-1969 — Page 71

57

Reference.

Соврей год

Caters to the K612

две

Соба

Textiles

The draft F.C.0. paper which Mr. Dunnett circulated on Friday does not appear to me to (i) reflect the course of the discussion - which was recorded by Miss Elliott - at the meeting in your office on 1st August, or (ii) to moot the points which Mr. Carey had in mind when he minuted you just before going on leave.

My difficulty with Mr. Dunnett's draft, which I did not see before it was circulated, are

2.

a) that it still puts too much emphasis on what we should say at the next meeting of the 0.1.0., whereas in our view what is needed is a review of the policy we should adopt to the ever-increasing demand for protection by the whole of the textile industry;

b) we are concerned only with what the Government has decided on cotton textiles, not with what the industry said in their Report;

c) our proposals for positive action are interleaved with an attack on the whole concept of Article XIX, without regard to what might be put in its place.

3. This last point seems to me the most important. For example, Article XIX is criticised because countries have been left to decide for themselves what constitutes serious injury, but the fact is that this has never been thought to be a real difficulty in the case of, c.g; Article VI and it leaves open the question whether, in this respect, one would be any better off under a policy of voluntary restraint. We would also find it difficult to accept the rationale of the thinking underlying para.23.

4. My own draft is longer than would be required for circulation to the P.C.0., but I thought that at this stage it would be better to spell out some of the arguments in order to find out what was the area of agreement between this Division and CRE1.

S. STEWART, Ind. 1 Div., 11th August 1969.

LR. HUGHES (SEC)

c.c. Kr. Peck (Sec)

Er. Dunnett (CRE1), Mr. Carey (1.1) o.r.

Mr. Goldsmith (CRE1) o.r. Mr. Jupp (I.1),

Mr. Kennis (CRD1),

1

Mr. Magor (CRE4) lir. Toms (CRE2), Kr. Whitehead (FCO), Mr. Carter (FCO), Hr. Slater (Treasury)

RE

RIGISTI

12 AUG 1969

HICK6/201/1