onforced.

And if we did succeed in forcing countries to take

non-discriminatory action under Article XIX we might find our

own trading interests danaged in the process,

7.

If a country was forced into unilateral discriminatory

action against Hong Kong we could be quite certain that it would

lead to import levels much lower than could be negotiated.

And

if such action was challenged in GATT on Hong Kong's behalf and

the door would have been opened for other importing countries to

treat Hong Kong in a similar way. There would be little sympathy

or consideration shown for Hong Kong in GATT. She would be without

the means of effective retaliation (Swedish exports to Hong Kong

are one-fifth of Hong Kong's exports to Sweden) and, short of

retaliation by ourselves on Hong Kong's behalf, there would be no

way of bringing pressure to bear on the Swedes.

*

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