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from the Commonwealth. that no other decisions had been taken by Ministers). The CTA had not been satisfactory to H.M.G. since the U.K. had bcen at a disadvantage because they had accepted a higher proportion of low cost imports in the past than had other developed countries; the U.K. had thus shouldered the burden of low cost production. They had hoped that some of this burden would have been transferred to other developed countries. This had not happened. They were afraid that a similar situation might develop on man made fibres.
If it did, there might be an attempt to freeze the situation and the U.K. would be at a disadvantage because its market had been relatively open in the past. On cotton textiles they hoped to work for control by tariffs alone, but as long as the CTA existed they reserved the right to impose restraints under it. They would like other developed countrie to hold their markets open to man made fibres. In this the position of Hong Kong was central. During the talks with Mr. Stans the Americans had referred to the agreements concluded by Hong Kong to restrain voluntarily man made fibres. The Americans had held their market open for man made fibres and were trying to use the Hong Kong procedents tú" justify Some restraints.
(He confirmed in reply to. Mr. Jordan
24.
If the U.K. agreed to further voluntary restraints this would bring nearer the day when there would be pressure for international action on man made fibres. Ideally the Board of Trade would wish to postpone that day indefinitely, but there were differences within the Board regarding how far it was possible to do that.
25. If, at the CTC, the United States proposed the extension of the CTA to man made fibres this would be opposed by the majority of countries. It was open to H.M.G. to make various proposals such as that the GATT might look at escape clauses
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