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(b) the need to decide before the meeting of the G.A.T.T. Cotton Textiles Committee in September, if
not earlier, what to do about the American threat;
9. It follows that in the Swedish case the dialogue should be kept going at least until September. The cxisting restraints
could be extended pro-rata - after inclusion of minimum growth
and shipments under E.A's would be resumed on a limited basis
without prejudice. If we have to settle for at least one restraint
as a gesture it would be much better to do something on shirts - where aggregate Swedish production has taken a large knock,
partly as a result of a change in fashion
anoraks and sweaters.
rather than on
10.
If the need to hold off the Swedes is agreed, Hong Kong would presumably be told that we had not found evidence that
imports from Hong Kong had caused or threatened serious injury
to the Swedish industry except possibly in the case of shirts and that we considered that the discussions should be kept going for three months while trade continued to flow at existing levels.
should similarly postpone a discussion on the new Canadian demand for restrictions on polyester/polynosic shirts.
We