0003220
G.F. 323
!
CONFIDENTIAL
t
2 -
in existence before the C.T.A. came into operation, particularly when, as in the case of France, the restrictions provided and still provide for only a very low level of trade. The department. does not hold any hope that an intervention on these lines will. have much effect but it may be tactically useful in any sub- sequent discussions with the French to have registered Hong Kong's concern in the Cotton Textiles Committee.
Adjustments in the cotton textile industry
8.
Under this item of the Agenda, participating countries are invited to describe what adjustments have been made within their domestic cotton textile industries to assist in the solution of the "problems" arising from international trade in cotton? textiles.
9.
The Hong Kong representatives will make no inter- vention under this item. It is possible that the United Kingdom delegation will speak on the arrangements it will introduce on 1st January 1972.
Future of the Cotton Textiles Arrangement
10.
This item on the Agenda is likely to provoke the most discussion in the Committee, but much depends on the attitude of the United States.
American attitude
11.
No one
American strategy with regard to the solution of the textile "problem" is either excellent or non existent. seems sure whether the Americans are playing a deep game or are moving on an ad hoc basis from rebuff to rebuff. Reports the department has received from the British Embassy in Washington, and from other sources, suggest that an outline plan was submitted to President Nixon some time ago, but it has not been possible. to obtain any idea of its content. It has been reported however that opinion within the Administration is divided over the line to be taken on textiles.
United Kingdom's attitude
12.
The British Government believes that the tariff should be the regulator for imports and consequently is opposed in principle to the extension of the Cotton Textiles Arrangement: in time and to a widening of its coverage, but is unlikely in practice to oppose an extension in time. C.T.A. 'cover' is, after all, required for the existing British quota arrangements at least until 31 December 1971. The British Government may propose and is likely to support moves to "improve" the Cotton Textiles Arrangement. Such moves may include a proposal that' the coverage of the Arrangement be widened to some extent without going so far as to cover all non-cotton textiles. The British Government remains opposed to the U.S. initiative for a multi- lateral arrangement covering all such textiles.
/Other
C
3