ཏགཱཡཾ དྷཡསཏནྡྷཏྟཏི,
کرده
3.
MIILE I HAVE NO ENTHUSIASM FOR A GATT MEETING TO BEGOTIATE EXTENSION OF THE CTA TO WOOL AND M.N.F
TO WOOL AND M.M.F. I AGREE BRCALLY WITH PARA, 2 OF GENEVA TELEGRAM 13 TO PE REPEATED TO YOU. 1 AM
THEREFORE NOT HAPPY ABOUT THE INDICATIONS FROM CENEVA CF LONG'S
THINKING. IF THE AMERICANS CANNOT BE PERSUADED TO DROP THE ISSUE,
AND THERE ARE TO DE NEGOTIATIONS, I WOULD THINK IT DISTINCTLY PREFERABLE THAT THESE BE HELD UNDER THE AEGIS OF CR WITHIN THE FRAMEWORK OF THE GATT. IF IT COMES TO THIS THE B.K. INDUSTRY EXPECT HE TO REQUEST THAT HONG KONG DE REPRESENTED IN THE BRITISH
DELEGATION.
4.
+
I HOPE, HOWEVER, THAT EUROPEAN NATIONS WILL NOT WEAKEN AND LET THEMSELVES SE DECEIVED BY U.S. PROMISES OF A GENTLEMAN'S AGREE?ENT NOT TO INVOKE ARTICLE 3 TYPE PROVISIONS AGAINST THEM. AMERICAN BEHAVIOUR THROUGHOUT THE HISTORY OF THE COTTON ARRANCE- MENTS SHOWS THAT RESTRAINTS ARE SOUGHT MORE ACCORDING TO THE VOLUME OF COMPLAINT BY THE U.S. INDUSTRY THAN TO THE DEGREE
OF ACTUAL OR ACTUALLY THREATENED DAMAGE BEING CAUSED. WITH THE CHEAP END OF THE U.S. TEXTILE (ESPECIALLY GARKENT) MARKET ALREADY ABANDONED BY U.S. INDUSTRY TO IMPORTS, IT SEEPS REASONABLE TO ASSUME THAT THE INDUSTRY WILL BE INCREASINGLY SENSITIVE TO
HIGHER COST AND QUALITY IMPORTS FROM EUROPE.
5. THERE IS THE FURTHER POINT THAT QUANTITATIVE TEXTILE
RESTRICTIONS MANIFESTLY FORCE TRADING UP 11 QUALITY TERMS,
EUROPEAN AGREEMENT TO AN ARRANGEMENT PRODUCING RESTRAINTS ON
ASIAN SALES TO THE U.S. MARKET WOULD, THEREFORE, FORCE THESE SALES MORE RAPIDLY INTO THAT SECTOR OF THE MARKET PRESENTLY
SUPPLIED FROM EUROPE.
(F C O PLS PASS PRIORITY TO ALL)
IN
GOVERNOR
SENT 101:53Z
RECD 1014537