TNAG-0166-FCO40-202-Exports-to-Benelux-countries-1969 — Page 51

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CYPHER/CAT A

CONFIDENTIAL

PRIORITY HONG KONG TO FOREIGN AND COMMONWEALTH OFFICE

PRIORITY HONG KONG TELNO 9 TO BRUSSELS 27 FEBRUARY 1969

TO:

1.27

CONFIDENTIAL ADDRESSED BRUSSELS TELNO 9 OF-27 FEBRUARY.

FOR DODGE.

RE

فر

ARCHIVES No.31

28 FEB 1969

MKK6/534/1

72

нк

PA på.

$1.0/8/09.

ESERVES

28

(29)

COTTON TEXTILES TO BENELUX- RELEASE OF 1967 CANTON

AND CURRENT RESERVES.

ހ

I REGRET DELAY IN REPLYING TO YOUR TELEGRAMS 9, 10, 13 AND

#

MEMORANDA NOS. 27 AND 28. UNFORTUNATELY, CONSULTATIONS WITH SWEDES

AND CNY HCLIDAYS HAVE SLOWED US DOWN.

*

2. NEXT FORMAL STEP WILL BE FOR BENELUX TO RESFOND TO OUR NOTE

ON DELIBERALISATION DATED 10 JANUARY, AND I ASSUME THEY WILL,

AT SAME TIME, MAKE DETAILED PROPOSALS FOR RELEASE OF RESERVES

UNDER ARTICLE 4 AGREE ENT. UNLESS YOU SEE OBJECTIONS, PLEASE

INTIMATE TO VERHAGEN THAT ANYTHING IN EXCESS OF A TWO-PHASE

RELEASE SCHENE WOULD BE EXTREMELY DIFFICULT FOR US. PRESENT

AGREEMENT CONTAINS ONLY A 'BEST EFFORTS' CLAUSE REGARDING SPACING

AND, SINCE OVER THE YEARS WE HAVE BEEN AT PAINS TO GET RID OF

SPACING ARRANGEMENTS IN OUR VARIOUS AGREEMENTS, WE WOULD NOT WISH

TO LACK PEDAL. BUT FRACTICALLY I SEE NO MAJOR OBJECTION TO

AGREEING TO A TWO-PHASE SCHEME FOR RELEASE OF 1958/69 RESERVES.

IF BENELUX PROCEED AS INDICATED IN YOUR NEMORANDUM NO 27, WE

CAN HARDLY JIB AT TWO TRANCHES AS THEY CANNOT KNOW NOW WHICH

IMPORT LICENCES ISSUED BEFORE 13 JANUARY WILL LAPSE UNUSED

WHEN THE SIX MONTHS IS UP. HOWEVER, ANY SCHEME INVOLVING MORE

THAN TWO PHASES WOULD BE UNACCEPTABLE NOT ONLY DOCTRINALLY, BUT

ALSO BECAUSE IT WOULD CAUSE UNECONCHIC FRAGMENTATION OF QUANTITIES

AVAILABLE AND BE MESSY TO ADMINISTER.

13.

CONFIDENT IAL