TNAG-0173-FCO40-209-United-Kingdom-Productivity-and-Efficiency-Study-effect-on-H-1969 — Page 145

· CONFIDENTIAL

-2-

TELL THE PORTUGUESE THAT HMG IS FACING A CRITICAL SITUATION WITH THE

DOMESTIC INDUSTRY ON THE TARIFF AND THAT IT WOULD NOT BE IN THE INTERESTS OF EITHER COUNTRY IF PORTUGUESE EXPORT THIS YEAR INCREASED

TO A LEVEL SIGNIFICANTLY IN EXCESS OF THE CONFIDENTIAL QUOTAS WHICH

WERE IN FORCE UNTIL RECENTLY. COMMONWEALTH GOVERNMENTS WILL NATURALLY

EXPRESS STRONG DISSATISFACTION THAT WE ARE PROPOSING A TARIFF ON

THEIR EXPORTS WHILE MAINTAINING DUTY FREE ENTRY FOR PORTUGAL,

STEWART

INTERNATIONAL TRADE DISTRIBUTION

COMMODITIES DEPT.

CONFIDENT IAL