their reactions were sufficiently positive for the idea to
be further pursued with the Japanese by the Foreign Secretary
in Tokyo and by officials who accompanied him, The Japanese
were sympathetic to the iles of a GATT discussion but said
that their relations with the US would not permit them to
give any public support to such a move, Informal discussions
of the proposal with Mr Long, Director General G.1", indicate
that he is unwilling to consider a GATE initiative except as
a last resort if the Americans are unable to reach bilateral
agreement. The position remains open and we shell be
discussing it further with the REC; it is unlikely that any
final decision will have been reached by the time of the
EFTA meeting.
EFTA POSITION
3. The Nordic countries at rate are unlikely to
favour any proposals for a GATT initiative designed to deter-
mine minimum criteria for proof of injury since the Norwegians
and Swedes at any rate have a number of restreint agreements
with: varioua low-cost suppliers, including Hong Kong, in mary
of which the case of injury is very weak.
WEDEN AND HONG KONG
After
In early 1968 Sweden asked, Hong Kong to restrain her
exports of a number of non-cotton textiles which the Swedes
alleged were causing injury to lomestic producers.
difficult and long-drewr-out discussions in which UK
Fartupated representatives as well as Hong Kong participation, it was
agreed that Hong Kong would restrain exports of three items
for twelve months from July 1968. In February 1969 these
restraints were extended to cover three more items and the
validity of the arrangement was continued up to 1 July 1970.
2