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{if
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He had not yet accepted that there was such a problem.
To sum up, he said that careful note had been taken of
what the U.S. Government representatives had had to say
and reports would now be made to the U.K. and H.K.
Governments.
There would no doubt be further discussions
between the U.K. and H.K. Governments and further con-
sideration given to whether there was a need for the two
Governments to change their earlier stand on this issue.
He thought that the response was most likely to be that
some other means would have to be found of solving the
problem. The principal difficulty at the moment in taking
the matter further was that there was in G.A.T.T. a need
to limit action to the particular products causing damage.
Which those particular products were was still not clear
and thus he and his colleagues found difficulty in responding
in a helpful way.
77.
Mr. Nehmer said he could not understand where
a new issue of principle arose for Hong Kong in arriving
at a comprehensive bilateral agreement. Exports of non-
cotton shirts from Hong Kong to Canada provided a good
example of how trade moved ahead of controls. He would
therefore like to have Hong Kong's views on where the
difference lay between a selective and comprehensive
approach.
/78.
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