4.
On the other hand we see clear
advantages in applying these measures
without discrimination in favour of one or
against the other exporting country.
We are already in an exposed position
over our obligations under GATT, and no
doubt other trade treaties. If we apply
the measures with discrimination betwcon
differe countries, we shall be yet more
exposed, although it is arguable that if
we refuse to permit overseas financing
of the deposits, we turn what we are able
to call at present a transitional measure
of monetary restriction into a much more
obvious interference with the volume and
pattern of international trade.
5.
fi
10
It would be easier to advise what
immediate action, if any, we should take
if we could say at this stage what was
the main purpose of these measures, but
it seems to me too early to decide. At
least as long as the Treasury does not
prevent overseas financing of deposits,
the position of course is satisfactory,
might
and It/therefore be inopportune to raise
the question now. But what we must, I
This
suggest, ensure is that the policy is
not changed without our being given the
opportunity to deploy the very strong
arguments to which I briefly refer above for mitigating the effect of there measures
in favour of Hong Kong.
on
NOTHING TO BE WRITTEN IN THIS MARGIN
We may be confident- That Hong Konef will manage to mamlan her export Frade to this country
Copy to:
T. G. O'Brien
licy
(Financial Policy and
Aid Department)
Mr. Moreton.