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3. IF THE OUTCOME WERE (1)"ABOVE, THE AMERICANS MIGHT SAY THAT EVERYBODY HAS GANGED UP AGAINST THEM AND THAT THERE WAS NOTHING LEFT FOR IT BUT UNILATERAL ACTION. IF IT WERE (11), WE MIGHT BE JOCKEYED INTO A POSITION IN WHICH IT WOULD BE DIFFICULT TO OPPOSE EXPORT RESTRAINTS FROM THE UNITED KINGDOM, EVEN THOUGH WE THINK THAT THERE IS NO CASE FOR THEM EITHER ON GROUNDS OF PRICE OR VOLUME.
4. WE RECOGNISE THAT THE AMERICANS MAY HAVE A CASE ON ONE OR TWO ITEMS, NOTABLY SHIRTS AND SWEATERS, AND WE ATTACH AS MUCH IMPORTANCE AS THE JAPANESE DO TO GETTING THE AMERICANS TO MAKE USE OF THE G.A.T.T. IN TAKING WHATEVER MEASURES MAY BE NECESSARY TO REMEDY THE INJURY CAUSED BY IMPORTS TO THE DOMESTIC INDUSTRY, THOUGH WE WOULD NOT INSIST ON SUCH MEASURES BEING TAKEN WITHIN THE FRAMEWORK OF ARTICLE XIX. AT THE OCTOBER MEETING OF THE COTTON TEXTILES COMMITTEE THE E.E.C. REPRESENTATIVE SAID THAT, IF DETAILED EXAMINATION SHOWED THAT A PROBLEM ON NON-COTTON TEXTILES EXISTED, THEN IT MIGHT BE OPPORTUNE TO STUDY, IN THE CONTEXT OF THE G. A.T.T., EQUITABLE SOLUTIONS THAT WOULD AVOID ISOLATED OR BILATERAL ACTION. THE AMERICANS COULD THEREFORE ASK FOR THE PROBLEM TO BE DISCUSSED UNDER ARTICLE XXII(2) OF THE G.A.T.T. AND YOU COULD TELL THE JAPANESE THAT, IF THE AMERICANS TOOK THIS ROUTE, WE WOULD BE PREPARED TO JOIN WITH OTHER EXPORTING COUNTRIES IN CONSIDERING WHAT, IF ANY, ACTION SHOULD BE TAKEN.
STEWART