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G.F. 323

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23.

repercussions for international trade.

54.

Mr. Nehmer agreed and said this was why the U.S.

Government saw it as essential that the textile problem

should be solved; it would not just go away.

55.

Sir Eugene Melville said that he and his colleagues

had listened to the information presented by the U.S.

Government's representatives with a great deal of care

and attention as was evinced by the numerous questions of

clarification which had been asked. Whilst he personally

was not convinced that the information adduced so far

indicated that the U.S. textile industry was suffering

serious injury as a result of imports, this was not to

say that he did not think a problem existed for the U.S.

Government. His concern was to relate that problem to the

impact of inports and to consider possible solutions to

it in the context of international trading obligations.

56.

12.45 p..

The discussions were adjourred for luncheon at

They were resumed at 15.35.

57.

hr. Lehner said he would continue by providing

further information with regard to paragraph 6 of the H.K.

Government's Note relating to sales, profits and production.

58.

In introducing his remarks, Mr. Nehner explained

that published data relating to production and sales covered

only public companies. It was estimated that there were

altogether some 35,000 plants in the textile and apparel

/industry.

CONFIDENTIAL

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