سکتے
CONFIDENTIAL
possibility of more permanent action on tariffs i.e. unbinding their
tariffs in the textile sector. Article XXVIII of the GATT provides a
procedure under which at the beginning of each 3 year period (and such a period begins on January 1st 1970) a contracting party may modify
a tariff concession contained in its schedule by negotiation and
agreement with any contracting party with which such concession was
initially negotiated, and with any other contracting party determined
to have a principal supplying interest. Notification of any intention
to negotiate such a change has to be given between 3 and 6 months
beforehand i.e. between July 1st and 30th September 1969. While
In any
Mr. Stans is reported to include this course in his recommendations to
the President, it is not clear whether this is intended to be a serious
line of policy, or a tactic which might somehow assist the achievement
of some preferable solution to the United States problem.
event the countries with whom the United States would have to reach
agreement would be entitled to compensation, to the extent of the
damage likely to be suffered by their trade, and even in respect
simply of the loss of tariff bindings. The idea has been entertained
in certain American quarters that they would not have to offer
compensation if the level of tariffs which they arrive at is sufficient
to permit the continuance of trade at the present level. But this
position seems untenable. No purpose would be served by altering the
level of tariffs, unless the effect would be to curtail at least the
growth of trade, and compensation could certainly be exacted for the
loss of such growth. As already mentioned above, the United States
Administration lacks legislative authority to offer compensation in
normal GATT terms.
CONFIDENTIAL
/Voluntary
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