CONFIDENTIAL
Reference...
EFTA
19 We cannot give Hong Kong a formal undertaking that
they will not suffer further from duty-free EFTA
competition, but we can assure Hong Kong that we are
watching the position very carefully, and that we do not
rule out the possibility of an approach to Portugal if
her cotton textile exports reach a level where they
seriously undermine our import controls.
It would be difficult to take restrictive action against
an EFTA partner. However, Portugal has twice secretly
agreed in the past to restrict her exports of cotton
textiles to the UK. 7
CONFIDENTIAL
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