i

CONFIDENTIAL

4

8. NEHMER FURTHER. ARGUED THAT IT MIGHT BE LESS INJURIOUS IN THE LONG RUN FOR INTERNATIONAL TRADE RELATIONS IF COMPREHENSIVE ARRANGEMENTS WERE MADE AB INITIO THAN IF SUCCESSIVE ANNUAL EXTENSIONS WITH NEW CATEGORIES ADDED HAD TO BE DISCUSSED

AND AGREED. HE ENDED WITH THE FAMILIAR REFERENCE TO THE FACT THAT, ONCE CONGRESS TOOK THE BIT BETWEEN ITS TEETH, THE ADMINISTRATION MIGHT NOT BE ABLE TO HALT THE SITUATION OR EVEN CONFINE IT TO TEXTILES. WE SAID THAT WE ALSO HAD A POLITICAL PROBLEM AND STRESSED THE COMMON DANGER OF MULTILATERAL ACTION CONTRARY TO GATT.

9. JORDAN WILL BE MAKING A FULLER REPORT BUT HAS SEEN AND AGREES WITH THIS SUMMARY. HE LEAVES FOR LONDON TODAY FOR DISCUSSIONS IN F C O AND B OT AND PLANS TO RETURN TO HONG KONG AT THE END OF THE WEEK.

F C O PASS PRIORITY TO HONG KONG WASHINGTON TOKYO AND SAVING TO OTTAWA AND UKDEL EEC BRUSSELS

SIR E MELVILLE

REPEATED AS REQUESTED/

INTERNATIONAL TRADE DISTRIBUTION

COMMODITIES D.

ADDITIONAL DISTRIBUTION

CONFIDENTIAL

HONG KONG; INTERNATIONAL

TRADE

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