CYPHER CAT/A
IMMEDIATE OTTAWA
TELNO.961
CONFIDENTIAL
[NEUTRAL]
COTTON TEXTILES.
Bxtli Council File
Списть
CONFIDENTIAL
TO FOREIGN AND COMMONWEALTH OFFICE
23 SEPTEMBER 1969.
133
HUGHES AND CAREY (BOARD OF TRADE) SPENT THE GREATER PART OF YESTERDAY AND TODAY DISCUSSING THE U.K. PROPOSALS ON COTTON TEXTILES WITH A TEAM OF CANADIAN OFFICIALS. THE CANADIAN TEAM WAS LED BY SCHWARZMANN (DEPT. OF INDUSTRY TRADE AND COMMERCE) WITH RODNEY GREY (DEPT. OF FINANCE) AS THE PRINCIPAL OTHER SPOKESMAN.
2. THE GENERAL CANADIAN LINE WHICH WAS PUT MORE OR LESS POLITELY ACCORDING TO WHETHER SCHWARZMANN OR GREY HELD THE FLOOR, WAS THAT THEY SAW NO JUSTIFIABLE BASIS FOR THE IMPOSITION OF A TARIFF ON CANADIAN COTTON TEXTILES. THEY COULD NOT AGREE TO ANY WAIVER FROM THE 1947 EXCHANGE OF LETTERS. THERE WERE BROAD POLITICAL REASONS FOR THIS. FIRST, COMING ON TOP OF ACTION NULLIFYING FREE ACCESS TO THE BRITISH MARKET FOR GRAIN AND ALUMINIUM, CANADIAN MINISTERS WOULD BE VERY SENSITIVE TO THE ERECTION OF A TARIFF IN CONTRAVENT- ION OF OUR OBLIGATIONS. SECONDLY, A TARIFF WOULD SERIOUSLY DAMAGE AN IMPORTANT EXPORT FROM CANADA, THE PRODUCTION OF WHICH WAS HEAVILY CONCENTRATED IN AREAS OF HIGH UNEMPLOYMENT WITH NO ALTERNATIVE INDUSTRY, AND WHICH WERE GENERALLY SENSITIVE IN THE GENERAL CANADIAN POLITICAL COMPLEX, THE FACT THAT IMPORTS FROM E.F.T.A. COUNTRIES, NOTABLY PORTUGAL AND THE IRISH REPUBLIC, WOULD REMAIN FREE OF DUTY, ADDED INSULT TO INJURY: THE ONLY OBLIGATIONS WHICH THE BRITISH WERE READY TO DISREGARD WERE THOSE WHICH THEY HAD TO CANADA. THIS SITUATION THEY SAW NO POSSIBILITY OF FINDING ADEQUATE COMP- ENSATIONA THE ISSUE COULD NOT BE TREATED AS INVOLVING AN ASSESSMENT
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