TNAG-0165-FCO40-201-Export-of-textiles-to-Norway-and-Sweden-1969 — Page 135

CONFIDENTIAL

2

(A)

WE HAVE DONE THIS ALREADY IN CONSULTATIONS HERE AND I SEE

NO POINT IN ATTEMPTING TO REOPEN THE ISSUES. SWEDES COULD

REASONABLY OBJECT TO REPETITION OF ARGUMENTS ALREADY THRASHED OUT.

(B) AS I MADE CLEAR IN MY TELEGRAM 339, I CONSIDER THAT EXISTING

RESTRAINTS SHOULD BE CONTINUED. A 3 OR 4 MONTH RESTRAINT

WOULD BE ADMINISTRATIVELY AND COMMERCIALLY UNSATISFACTORY TO US,

THE TRADE NEEDS TO BE ABLE TO PLAN AHEAD, DELIVERY DATES ARE

SUCH THAT WE CANNOT NOWADAYS DELIVER TO ORDER. THE TRADE HAS

COMPLAINED THAT 3-MONTH EXPORT AUTHORISATIONS DID NOT GIVE

SUFFICIENT TIME. FOR DELIVERY.

·

(C) I FEAR THAT (C) WOULD BE A TRANSPARENT MANOEUVRE THAT

WOULD SATISFY NO ONE: AS BOT SAID LAST SUMMER THERE IS LITTLE

DIFFERENCE BETWEEN EA'S WITH TRIGGER POINTS AND RESTRAINTS. TRIGGER POINTS COULD BE KEPT[? GP OMTD]SECRET AS THE SWEDISH GOVT

WOULD HAVE TO DISCLOSE THE TRIGGER POINTS TO THEIR TRADE ADVISERS

(AFTER THEIR EXPERIENCE WITH EA'S LAST YEAR THEY WOULD NOT ACCEPT

A PLAIN EA SYSTEM AGAIN FOR THESE ITEMS). AT THE SAME TIME WE

COULD NOT IN FAIRNESS TO OUR INDUSTRY ISSUE EA'S ON THE USUAL

FIRST-COME FIRST -SERVED BASIS IF WE KNEW THAT THERE WERE TRIGGER

POINTS AT A LEVEL WHICH WOULD ALMOST CERTAINLY BE REACHED WELL

BEFORE THE END OF THE YEAR. IN ANY CASE I THINK THIS SOLUTION

WITH ITS PROSPECT OF A FOURTH ROUND OF CONSULTATIONS LATER IN 1969

„WOULD CERTAINLY BE UNACCEPTABLE TO THE SWEDES. IF SO, AND THERE

WAS NO AGREEMENT, WE COULD ONLY EITHER-

(1) RESUME UNGESTRICTED EXPORT LICENSING ON 1 JULY, CHALLENGING

THE SWEDES TO IMPOSE IMPORT RESTRICTIONS, OR

() CONTINUE THE PRESENT SUSPENSION UNDER HEAVY CRITICISM FROM

THE TRADE WHILE WE THRASHED OUT THE POLICY ISSUES WITH YOU.

5. I AM SENDING JORDAN TO LONDON TONIGHT. HE WILL BE AVAILABLE

FOR DISCUSSIONS THURSDAY AFTERNOON AND FRIDAY TO PROVIDE ANY

CONFIDENTIAL

/FURTHER

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