TNAG-0165-FCO40-201-Export-of-textiles-to-Norway-and-Sweden-1969 — Page 22

13

position for the U.K. seemed to be that there should be no

restraint on imports of textiles outside the cotton sector.

The position that the U.K. had adopted with the U.S. was that

there should be no legal restriction on items outside the

a

cotton field apart from action under Article XIX. However

the following questions remained: first, if other countries

felt it worth their while making a deal on items of this sort ·

for fear of even more restrictive action against them, was

this worth while making into an issue? Such restraints might

be better than an agreed system of general restraints on non-cotton

items such as those imposed under the LTA. Second, whether

Hong Kong should enter into any new restraints with Sweden

(apart from cotton) and three, was the U.L. argument against (2)

so strong that Ministers should be asked to overrule the Governor

on this point.

Mr. Whitehead said the U.K. had been aware of the Swedish application

for restraints for a long time

instructions.

G

it was now very late to alter

Such action would cause great difficulty with the

Swedes on Monday.

Mr. Stewart, speaking for Mr. Carey who had not been able to attend

the meeting, said that he did not accept the present timetable.

G

that

The attitude of Industries 1 had always been made quite clear

they had doubts about the negotiations and even about continuing

the existing restraints. He did not accept that a meeting should

take place this month or, even if the meeting were held, that an

agreement need necessarily be concluded.

Industries 1 had proposed

a "face-saving" formula for the meeting and he did not see why this

formula could not be adopted.

In regard to Article XIX action, Mr. Stewart pointed out that

Germany had accepted that before a restriction was imposed an

Article XIX case should exist.

Canada had sought advice about

/taking