TNAG-0300-FCO40-336-Entitlement-of-Hong-Kong-to-generalized-tariffs-preferences--1971 — Page 38

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deal with the area of non-cotton textiles and if we are to do a fundamental review of our policy, it would seem best to concentrate on the options that cover the problems of both non- cotton and cotton textiles.

10. If one accepts the foregoing, one is left of the current options with the possible combination of action anticipating our accession and/or possible action, in concert with the EEC, with the objective of the eventual policy

we would

want to see as a member of the Ten in the middle 1970s, even though much of the present thinking is on the basis of the short term situation.

•

11. The combination that might be left would anticipate the pattern of the EEC restraint limits in post 1974; discuss with the EEC a joint re-negotiation of their LTA restraint arrangements for dealing with disruptive imports, as well as consider with them the possibility of introducing combined ceilings in MMF and cotton. It might also be necessary to consider whether the imposition of a surcharge and/or restrictive imposition of QRs on cottons in 1972 might be one of our weapons. 12. An approach based on the factors set out in the preceding paragraph would, as the attached papers point out, attract some odium and it might be (see paragraph 5(iii) of the minutes of the meeting on 25 October) that the EEC would not wish at this time to go as far as we needed. The odium we might get for being a front runner would certainly be less than that of the other options. The timing of an approach to the EEC suggesting a combined position would require careful judgement but there should be no great difficulty in persuading the EEC to accept that the problems we are trying to solve are ones common to the Community and Britain and that if we properly prepare the various steps the end product should be a realistic textiles policy for the enlarged Community.

13. As far as the FCO is concerned, the meeting with the DTI on 3 November will obviously be of a preliminary nature but, unless

/there

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