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84.
Mr. Nehmer expressed the view that at the time
the cotton agreement was made Hong Kong was prepared to
sacrifice principle for square yards; in this case Hong
Kong seemed to be standing on principle. Sir Eugene Melville
thought the principles very important and that it was
therefore necessary for them to be considered by the G.A.T.T.
Mr. Nehner felt that there was no new principle involved
in the U.S. proposals which were merely extensions of the
principles already established for cotton.
85.
Sir Eugene Melville said the circumstances in
which the L.T.A. was negotiated were quite different from
those which applied today to non-cottons. The L.T.A. was
to give the cotton industries of the developed countries
time to adjust to changed circunstances; there was no such
need for the non-cotton industries.
86.
Mr. Blackman expressed himself taken aback at
the notion that restraint should not be imposed on items
which Hong Kong was not exporting. Did this mean that Hong
Kong would welcome restraint on those items which it was
exporting? Mr. Jordan said Hong Kong abhorred restraints
of any kind but recognised an obligation to discuss and if
necessary restrain exports of particular products where
these products are shown to be causing serious damage.
The changing pattern of imports suggested to him that
domestic manufacturers did not shift fast enough to meet
/changes
CONFIDENTIAL