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as the exporting countries had thought it would and should.
Furthermore the international structure of the textile
industry was different now from the time when the L.T.A.
was negotiated.
51.
r. Stewart said that for most inporting countries,
the L.T.A. only papered over the cracks whilst the cracks
became wider and wider. The U.K. Government was now
convinced that quota restraints were the wrong path to
orderly trade and planned to revert to the tariff as the
regulator of imports.
52.
Mr. Nehner reiterated his point that different
Government's approached the problems facing their textile
industries in different ways. The U.S. Government did not
want to reduce imports; only to moderate the rate of growth.
This moderation would have to be achieved one way or another.
He suggested that the proposals which the U.S. Government
was now making were the best way of obtaining that moderation.
53.
Sir Eugene Melville said that it was essential to
relate the U.S. proposals to the possible effects they
might have on world trade. The C.T.A. had already made a
hole in the G.A.T.T. and further breaches could bring the
whole of the G.A.T.T. into disrepute.
There was no end
to the number of breaches which could be made and without
wishing to over-dramatise the situation, he felt that any
extension beyond cotton could have the most serious
/repercussions
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