TNAG-0333-FCO40-369-Visits-of-Secretary-of-State-for-Foreign-and-Commonwealth-Af-1972 — Page 126

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A. I AM THEREFORE MOST RELUCTANT TO ACKNOWLEDGE THAT WE ARE APPROACHING AN IMPASSE. HADDON CAVE MADE IT CLEAR TO MR ROYLE THAT YOUR DELEGATION WILL BE MOST ANXIOUS TO REACH AN AGIREED SOLUTION. HOWEVER SOME OF YOUR OFFICIALS MAY FEEL THAT THEY YISH TO STICK TO THE LINE THEY HELD THROUGHOUT THE EARLIER TALKS. THIS WOULD IMPLY THEY WILL NOT MAKE THE MOVEMENT TOWARDS OUR POSITION THAT IS ESSENTIAL IF AGREEMENT IS TO BE POSSIBLE. THEY NAVE SPOKEN OF EMBITTERMENT IN THE TEXTILES ADVISORY BOARD AND OF THE INTENTION OF THEIR MEMBERS TO COME TO LONDON FOR THE TALKS. WHILE I FULLY APPRECIATE THEIR CONCERN, I HOPE THEY CAN UNDERSTAND THAT THE ECONOMIC WELL BEING OF BRITISH INDUSTRY MUST BE BORNE IN MIND NO LESS THAN THEIR OWN.

5. I HOPE YOU WILL IMPRESS ON YOUR NEGOTIATING TEAM AND ON THE TEXTILE ADVISORY BOARD WHAT IS AT STAKE. WITHIN THE LIME TS ALREADY INDICATED TO YOUR TEAM WE WILL CONTINUE TO BE FLEXIBLE, BUT MUST NOW LOOK FOR MOVEMENT FROM THE OTHER SIDE. I VERY MUCH HOPE THAT THE BRIEF PREPARED FOR YOUR OWN OFFICIALS WILL HELP MAKE A

SETTLEMENT POSSIBLE.

DOUGLAS-HOME

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MR BOTTOMLEY

SIR D WATSON

MR KEEBLE MR WILFORD

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