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They had not yet accepted that there was such a problem.
To sum up, he said that careful note had been taken’of
what the U.S. Government representatives had had to say
and reports would now be made to the U.K. and H.K.
Governments.
There would no doubt be further discussions
between the U.K. and H.K. Governments and further considera-
tion given to whether there was a need for the two Governments
to change their earlier stand on this issue. He thought that
the response was most likely to be that some other means would.
have to be found of solving the problem.
There was a
considerable difference between the comprehensive and the
selective approaches. The principal difficulty at the
moment in taking the matter further was that there was in
G.A.T.T. a need to limit action to the particular products
causing damage. Which those particular products were was
still not clear and thus he and his colleagues found difficulty
in responding in a helpful way.
77.
Mr. Nehmer said he could not understand where
a new issue of principle arose for Hong Kong in arriving
at a comprehensive bilateral agreement. Exports of non-
cotton shirts from Hong Kong to Canada provided a good
example of how trade moved ahead of controls. He would
therefore like to have Hong Kong's views on where the
difference lay between a selective and comprehensive
approach.
/78.
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