Reference........

14

Mr. Carter

You asked for a brief explanatory note.

In January 1965 the Irish Government introduced restrictions on the importation of all textiles (except woollen and silk yarns, woollen woven fabrics and carpets) against sixteen supplier countries, including Hong Kong. Protests were made on Hong Kong's behalf, although at that time Ireland was not a member of GATT.

2.

In November 1967 Ireland became a GATT member and, in the following February, a second aide-memoire was delivered to the Irish Government, pointing out that the restrictions were inconsistent with obliga- tions under the GATT. On 11 July, 1968, the Irish Government replied, side-stepping the GÁTT issue and quoting other justifications for their action (see paragraph 7 of the enclosure to (6)).

3. The next proposal was that this matter should be placed on the agenda for the Anglo/Irish Economic Committee meeting in December last. This proposal foundered as a direct result of the introduction of the UK's import deposit scheme. At this stage David Jordan was in London and the matter was discussed; Jordan expressed the hope that the matter would not be dropped by this Department, although he accepted that the timing was then unfavourable to raise the matter with the Irish.

4. Subsequently Herbert Stewart wrote to Jordan suggesting that a reply be given to the Irish as soon as possible if it was to have any meaning at all. Jordan replied on 31 January that they "should not leave the Irish aide memoire unanswered too long" and were then considering a draft reply. He also hinted that direct negotiations with the Irish may prove the only answer.

5. We have since heard nothing whatsoever from Hong Kong. At (13) there is a record, from Jones, of an exchange in the GATT, in which the Irish restrictions were notified by Japan and Hong Kong, and in which the Irish stated that they were study- ing the terms of the CTA and might adhere to it in due course.

IRifway

(I. R. Murray) 19 June 1969

Mr. Jordan

Srish

will expedite reply to

ande

memoire

on

his retina.

1271.

PA please

23/6

120/6/89. LAST PAPER

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