TNAG-0391-FCO40-437-Restriction-on-cotton-textile-exports-from-Hong-Kong-to-the--1973 — Page 47

PRIORITY CYPHER/CATH

GP5230

FM UREP BRUSSELS 241548Z

[STRICTED [FRAME]

RESTRICTED

TO PRIORITY FCO TEL NO 5782 OF 24 NOVEMBER.

"

COTTON YARN - RETENTION OF RESTICTIONS BEYOND 1 JANUARY 1974.

W/1/2

WE WERE MOST GRATEFUL FOR SIGHT OF THE SUBMISSION, HAVING STUDIED IT,

WE AGREE ENTIRELY WITH THE COMLCUSION THAT OJECTIVELY THERE IS NO

CASE. IF EVER THERE WAS AN ARGUMENT BASED ON THE FORBIDDEN

OF A THREAT THE SECOND PARA ON PAGE 2 IS IT.

THREAT

2. WE DISAGREE WITH THE NOTION THAT PHASING OUT CAN BE SHOWN TO BE A REAL LIVE EXAMPLE OF THE THREE YEARS BY STAGES RULE, THE CASE

FOR RESTRICTION IS SO INSUBSTANTIAL THAT OBSERVATION OF THE HARMLESS

EFFECTS OF A THREE YEAR PHASING PROVES NOTHING. AND IT DOES NOT HELP

TO PARADE SUCH AN EXAMPLE OF OUR SAGACITY WHEN THE PRODUCT IS NOT ONE THAT THE OTHER MEMBER STATES FEEL A NEED TO RESTRICT (WE ARE

PUZZLED BY THE REFERENCES TO HIDDEN RESTRICTIONS).

3. WE WOULD FEEL SOME SCRUPLE ABOUT CALLING A THREE YEAR PHASING A

**COMPROMISE". IT IS MORE PROPERLY THE ACCEPTANCE OF THE INDUST-

RY'S CASE - IT IS HARD TO BELIEVE THAT THE SPINNERS SUGGEST THAT THE

RESTRICTION SHOUL STAY ON IN FULL UNTIL 1976 AND THEN TO BE TAKEN

OFF AT A STROKE.

4. WE WILL OF COURSE IF INSTRUCTED BATTLE FOR A FURTHER DEROGATION,

WE DO NOT SHARE THE VIEW THAT WE CAN EXPECT SOME HELP FROM OTHERS.

BUT DO WE REALLY WANT TO SPEND POWDER AND SHOT ON THIS WHEN THERE IS

SO MUCH ELSE OF FAR GREATER POLITICAL AND MATERIAL IMPORTANCE

IN THE TEXTILE SECTOR? NEW LTA, NEW BILATERALS, HONG KONG IN GPS, THE DURDEN SHARING/FREE CIRCULATION SYNDROME AND ALL THE LITTLE LOCAL FLURRIES LIKE THE TURKISH QUOTAS, THE CYRPUS QUOTAS AND SO ON.

WOULD IT NOT AFTER ALL BE AN IDEA OT FIGHT THE CASES WHERE WE CAN

FEEL THAT WE HAVE ARGUMENTS USABLE IN COMMUNITY FORA AND NOT

CASES WHERE BOTH THE OBJECTIVE FACTS AND COMMUNITY DECISIONS

ARE AGAINST US.

FCO PASS ADVANCE COPIES

FCO HART

DII MISS LOWNE MISS ELLIOTT

PALLISER.

EUROPEON ECONOMIC DISTRIBUTION,

EID

CADVANCED AS REQUESTED]

ADDITIONAL DISTRIButton

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