2700493
1.371 8,000-7/67-B55633
From: Counsellor for Hong Kong Commercial Affairs, Washington
BRITISH EMBASSY, WASHINGTON, D.C.
To
: Director of Commerce and Industry
Memorandum No.(continued)
-3-
(16) The U.S. position on border taxes is restated, including the
The report recommends the continuation of efforts list of possible remedies. in GATT to find a solution which would neutralise trade distortions.
(17) An international code for government procurement should be sought which would establish practices no more restrictive than those of the United States. Concealed protectionism and unpublished buying procedures are conderned. If early progress cannot be made towards a solution, existing open procedures are in danger of abandonment.
(18) Access to adjustment assistance by both groups of workers and individual firms or establishments affected by increased imports should be made easier (on the lines proposed in the Administration's abortive 1968 trade bill). fforts through the I.L.0. and elsewhere to reach agreement on fair labour standards should be intensified and GATT Article XXII procedure should be used to deal with exports produced under palpably unfair labour standards.
(19) The chapter on developing countries endorses world commodity agreements where these would stabilise prices without fostering uneconomic surpluses. It reaffirms support for generalised preferences for 1.d.c.'s
The U.S. should not extend preferences ↑ provided reverse preferences are dropped. to developing countries which maintain reverse preferences. Regional free trade arrangements between developing countries are to be encouraged 10 their genuine objective is to achieve complete free trade. Coordination of trade, aid and development policies towards and in developing countries should be improved.
(20) The U.S. Government must strive to eliminate foreign barriers to U.S. investrent and (George Meany of the A.F.L./C.I.O. dissenting) abolish the present controls on outward investment as soon as the balance of payments allows.
(21) EXIM Bank should streamline its procedures and establish regional services. Export credits should be exempt from domestic credit restraints if safeguards against abuse can be devised.
(22) The report generally endorses the expansion of East-West trade and the liberalisation of U.S. tariff and credit policy towards Eastern Europe.
A. Hermann