TNAG-0387-FCO40-433-Exports-of-non-cotton-textiles-from-Hong-Kong-to-the-EEC-1973 — Page 38

CONFIDENTIAL

b.

C.

d.

f.

they must clearly be exploratory and subject to whatever multi-fibre agreement is finally agreed. (Since the latter is unlikely to be agreed until the very end of this year, we must already envisage the possibility of extending the present bilaterals for a limited period while now bilaterals in line with the multi-fibre agreement are finalised);

all restraints in the new bilaterals must be fully subject to the safeguards and surveillance terns of the multi-fibre ugreement i e there should be no contructing out on the lines favoured by the French and probably by hir Ernst;

restraints should cover only those products currently restricted in the Community plus any that could be justified under the prospective multi-fibre criteria;

Community-wide restraints should apply only to those products currently under restraint in all ember countries (i.c. woven cotton and possibly woven polyester cotton textiles and made-ups). Iroducts restrained only in certain Lember countries should retain so restricted. We should continue to resist the concept of sensitive lists of general application;

the Community should be prepared to review all existing restraints and where appropriate phase then out in accordance with the new multi-fibre agreement;

on the above terms, we could agree to the exploratory talks covering non-cotton as well as cotton textiles,

3 Kr

Hr Ernst, backed by at least the French, will object that such conditions would prejudge a decision by the Community on the kind of multi-fibre agreement it could accept. At this stage, it is for Mr Ernst to suggest ways out of this dilemma.

P W RIDLEY CT Division 4 July 1973

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