XIX ON A DISCRIMINATORY BASIS AND/OR WHERE NO REAL 'SERIOUS INJURY'
CAN BE DEMONSTRATED. IT IS TRUE THAT WE SEE POSSIBLE ADVANTAGE
(OR RATHER MODIFICATION OF THE DAMAGE) IN ACHIEVING A 'ROLL IN'
FOR HONG KONG COTTON QUOTAS BUT, MORE IMPORTANTLY, I BELIEVE THAT
THIS IS THE BEST WAY TO MAINTAIN THE UNIQUE NATURE OF
THE CTA AND TO AVOID THE DANGER OF PROLIFIERATION INTO NON-TEXTILE
TRADE. A NEW ARRANGEMENT' FOR NON-COTTON TEXTILES
HOULD CARRY THIS DANGER WHILE THE USE OF ARTICLE XIX REQUIRES
NON-DISCRIMINATORY ACTION AND MAY LEAD TO RETALIATION. I BELIEVE
THAT THE U.S. HAVE NOT USED THIS EXISTING ARTICLE BECAUSE THEY
RECOGNISE THE DANGERS AND BECAUSE THEY WANT UNILATERAL CONCESSIONS
BY EXPORTERS, WITHOUT COMPENSATION OR THE DANGER OF RETALIATION.
FCO PLEASE PASS PRIORITY TOKYO AND ROUTINE WASHINGTON, SEOUL,
TAMSUI, UKDEL EEC, UKMIS GENEVA, AND HONG KONG GOVERNMENT OFFICE
LONDON.
GOVERNOR.
SENT AT 1130 19/2
RECD AT 1134 19/2