TNAG-0386-FCO40-432-Exports-of-non-cotton-textiles-from-Hong-Kong-to-the-EEC-1973 — Page 30

CONFIDENTIAL

b.

C.

national 'quota' could be put at an unrestrictive

level. More drastically we could offer concessions on growth rates and base periods. would we be prepared to go as far as nil growth rates and base periods. Would we be prepared to go as far as nil growth rates on 1973 imports

into the Community from principal suppliers,

perhaps for a three year period, or even endorse a negotiating mandate that tried to put the clock back, in exchange for some free circulation?

COTTON YARN. We have won our battle for this

year, but there will be pressure on us to reduce our restrictions to the three major Asian suppliers,

if not remove them altogether, in 1974.

We are

initiating with the BTEA a study of the cotton yarn case on its merits, and expect to be better placed in a few weeks or months to judge the real value and importance to our industry of our yarn quotas.

Our attitude must depend on the outcome. If

liberalisation, immediately or progressively, becomes possible we could argue that if we are

external expected to make this step towards a homogeneous L Community position we can reasonably expect our partners to make some move towards a homogeneous internal position.

NON-COTTONS FROM HONG KONG (AND OTHER ASIANS). There will be attempts to have restraints on non- cotton goods formalised on a Community basis for 1974. The French do their own thing and don't care, while we are pretty well covered by our polyester-cotton agreement until 1976. But the Council Working Group is bound to continue to thrash around on this subject;

the Germans, Benelux

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