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from objective criteria given the fact that it will be extremely difficult to move the Community onto this tack at this late stage in consideration of the MFA mandate. No compromise position seems possible. Either India is on the list or she is not.
5. I had a brief discussion with the Minister of State about the
He concluded that we problem of India's inclusion on 21 April. should allow the Department of Industry and the Ministry of Overseas Development to fight this question out between themselves and not take a position, particularly because the whole of the UK's relations with India are now under review.
We fare
6. It is also important to examine what the inclusion of India in the "super competitive" list will in fact mean in practical terms. No supplier of sensitive products, whether or not super competitive, can expect to continue to receive the 6% minimum growth which they have been accorded under the present MFA. But the Community has not yet decided whether the super competitives will have their quota
There is access cut back from present levels under the new regine. some head of steam, led by the Dutch and the French, to do just that. The Dutch at least are arguing that to cut the dominant suppliers
(FCO Stanh) would provide sufficient room in the market for newcomers. very dubious about this proposal because we know that we will face strong opposition from the super competitives, led by Hong Kong, to such a cut-back and the whole Community programme of negotiated textile restraints could well be held up by tough Hong Kong negotiating tactics. If, therefore, we continue to oppose cut-backs, primarily because of the Hong Kong risk, we shall in fact be helping the Indians. But as to avoiding a reduction in Indian growth rates on sensitive products, I believe there is no way which would be consistent with the interests of the British textile industry or acceptable to the DoT and the DoI.
7.
I recommend that the Minister of State should not intervene in tì. correspondence between Mrs Hart and Mr Meacher but should wait to see her RD paper
DJ Abuttatt
HJ ARBUTHNOTT EID(E)
10 May 1977
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