CONFDENTIAL
fields". Present indications are that developing countries in general, as well as the developed countries which Mr. Stans visited, remain opposed to the extension of the Long Term Arrangement to other
textiles.
Quantitative Import Restriction
of
8. (a) The correct procedure would be for the Americans to invoke
Article XIX of the GATT (as they have done on over 20 occasions in the past mostly, however, in respect of tariff increases) and it is possible that in one or two. narrow sectors of their textile industry they might be
able to make out something of a case. The Americans have
indicated clearly to us and to others that they do not contemplate this course. Their reasons appear to be principally that to invoke Article XIX involves the
corresponding escape clause in their own domestic
legislation, and requires the approval of their own
Tariff Commission.
They are evidently doubtful whether
their own Tariff Commission would think they had a
satisfactory case. In any event the procedures they would
have to go through domestically would be cumbrous and
lengthy. Other reasons for thinking the Americans would
be reluctant to take this course are
(i) Action under Article XIX would have to be non-
discriminatory. The Americans have recently been
emphasising that imports from Europe are of
They may be
comparatively little concern to them.
taking this line for tactical reasons, i.e. to seek
CONFIDENTIAL
/to