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export controls (i.e., leaving the controls which are also
required on part of the importing country out of consideration
for the time being). However, export controls will only be
effective if there is a small number of producers and dealers
to be checked. In the case of a large number of producers and
exporters, an effective application of restrictions on exports
can normally hardly be realized without altering the economic
constitution (i.e., obligatory establishment of "Export Control
Agencies").
5. L.T.A. (G.A.T.T.) Objections
a) An extension of the L.T.A. under the G.A.T.T. would run contrary
to L.T.A.'s special status in the cotton textiles branch. The
member countries have stated several times in the L.T.A. that
they do not want to extend the field of application of this
Agreement beyond that of cotton textiles. (Articles 1 and 6b).
b) Moreover, an extension of the Agreement would basically change the
character of the L.T.A. in so far as national restrictions on
exports between industrial countries (in the case of textiles
e.g. between the U.S.A. on the one hand and possibly Great
Britain, Japan, and Italy, on the other hand) would also be
tolerated in future. Thus, the instrument of voluntary
restriction on exports would assume a general character.
Pursuant
to the L.T.A., restrictions on exports have hitherto only been
permitted in the case of imports from countries with low price
levels.
6. Practical Objections
According to information from American sources, some doubts
about the objective right to demand import protection for the
U.S. textiles industry might arise.
a) The 1968 U.S. Tariff Commission which studied the situation