particularly of thinne rules are not clear
Shing
before (2). A A pissquiate:
with the problem of low-cost textiles would detract from the status of GATT as providing the basic rules for the regulation of inter- national trade and might open the door to further derogations or GATT rules. On the other hand, GATT has withstood during its lifetime a good many derogations from the strict interpretation of its rules (e.g. in respect of agriculture or the various partial preference arrangements entered into by the EEC which have been neither approved nor condemned by GATT) and it could be plaimed that arrangements made willingly by individual members of the GATT with one another
are not derogations from the rules.
20. It is for consideration whether we should seek to
remedy this situation by working for a solution on the following lines:
21.
f. it uile not
happen.
(a) The only escape clause action permitted
should be in accordance with Article X1x i.e. restraint on trade in particular items should only be in the form of non-discriminatory import restric- tions, and there should be no discriminatory voluntary export restraints.
(b) The conditions for action under Article X1X should be clarified 1.e. an agreed definition should be framed of "serious injury to domestic producers"
(c) Particular uses of Article X1X should be
subjected to scrutiny by GATT e.g. by a panel of the kind proposed in 1965 by the then Director-General.
This would have the following advantages for us:
(a) By making it more difficult for developed
countries to restrain imports we would be relieving
pressures on our own market.
(b) By ruling out voluntary restraint arrange- ments it would cut out a practice which we are not well-placed to use ourselves.
(o) Hong Kong would benefit from the general opening of markets in developed countries.
(a) The prestige of GATT would be upheld and the risk of "creeping bilateralism" averted.
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