8.

lines:

(ii) To propose that the two parts of the terms

of reference ("to review the situation and to recommend the best ways of dealing with it") should be undertaken separately. The second stage might indeed not even be undertaken if the first convinced the Americans that they had no case, but in this case we could not hope to achieve any of our positive objectives and it might be best not to make a definite commitment that the second stage would only be embarked on if the first when concluded disclosed a situa- tion requiring action.

The terms of reference might then be developed on these

Noting that in the view of some countries a situation has arisen or may arise in which imports cause disruption in their markets, especially in the field of non-cotton textiles, the Contracting Parties decide to establish a Working Party

9.

(a) (i) to examine the position in respect of world

(b)

trade in non-cotton textiles and report on the extent to which the rise of imports is causing or threatening to cause disruption of the market in importing countries;

(11) to advise whether the situation disclosed

makes it appropriate to consider action to remedy the position either in general or in particular sectors.

to review the existing rules, procedures and practices with respect to the action taken in situations in which the increase of imports causes or threatens to cause serious injury to domestic producers of like or directly competi- tive products, and make recommendations whether these remain adequate and appropriate to provide for situations which are likely to arise or have arisen.

We should also give thought to what our reactions should

/be

!

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