PROBABLY REGARD AS UNHELPFUL BECAUSE THE U.S. GOVERNMENT ARE SEEKING 10' ESTABLISH RESTRAINTS ON ALMOST ALL NON-COTTON TEXTILES WHEN NO CONVINCING EVIDENCE HAS BEEN PRODUCED WHICH SHOWS THAT THE AMERICAN

TEXTILE INDUSTRY AS A WHOLE IS THREATENED WITH SCANT] INJURY.

SU RESTRAINTS WOULD HAVE THE EFFECT OF TAKING AN IMPORTANT SEGMENT OF WORLD TRADE OUT OF THE MARKET-PLACE, PERHAPS PERMANENTLY, AND SO WOULD SET BACK THE STEADY PROGRESS OF THE LAST TWENTY YEARS IN FREEING TRADE IN MANUFACTURERS FROM QUANTITATIVE CONTROL. THE REAL

RISKE AS YOU MAY AGREE, IS OF THROWING THE MACHINE INTO REVERSE

AND OF SETTING A PRECEDENT FOR ARBITRARY IMPORT RESTRICTIONS ON WHOLE AREAS OF INDUSTRIAL PRODUCTION ANYWHERE IN THE WORLD.

14.

--2--

4. IF HOWEVER YOU WERE INSTEAD TO SEEK REMEDIES FOR SPECIFIC CASES OF DEMONSTRABLE HARDSHIP I BELIEVE THAT YOU WOULD FIND EXPORTING COUNTRIES DISPOSED TO HELP, BOTH IMMEDIATELY AND OVER SIMILAR CASES IF AND WHEN THEY AROSE IN THE FUTURE. SHOULD WE NOT BE WISE TO TACKLE THE PROBLEMS WHICH CURRENTLY EXIST RATHER THAN TRYING TO DEVISE SOME COMPREHENSIVE SYSTEM FOR CONTINGENT PROBLEMS MANY OF WHICH MAY NEVER ARISE ? WE WOULD BE READY TO JOIN WITH YOU AND OTHER COUNTRIES IN GATT IN SEEKING SOLUTIONS FOR ANY IMMEDIATE DIFFICULTIES AND IN CONSIDERING WHETHER EXISTING GATT PROCEDURES

FOR HANDLING THIS SORT OF PROBLEM EXPEDITIOUSLY COULD BE IMPROVED

5. I LOOK FORWARD TO HEARING HOW YOU FEEL ABOUT THIS. FCO PASS UKMIS GENEVA, HONG KONG AND TOKYO.

Mr.

FREEMAN

F

is goes Who Care Tish. Nighs.

7 Whis

Then su wash. Th No. 558.

GRS: 475

SENT:20:1529Z FEB A.A.

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