PRIORITY

CYPHER/CAT A

FM UKMIS GENEVA 31

CONFIDENTIAL

YEUTRAL

REI.

CONFIDENTIAL

17

11)

29)

TO PRIORITY F C O TEL NO 235 OF 30

RECEIVED IN

REGISTRY No.51 -1 JUN1972

HICK 6/8

MAY

INFO FRIORITY HONG KONG, INFO WASHINGTON, UKDEL EEC BRUSSELS AND TOKYO

MY TEL NO 224 (NOT TO ALL): GATT TEXTILE STUDY.

23

1. PROPOSAL FOR TEXTILE STUDY WAS DULY INTRODUCED PY LONG AT YESTERDAY'S COUNCIL MEETING UNDER QUOTE OTHER BUSINESS UNQUOTE. 12 HIS INTRODUCTION THE DIRECTOR-GENERAL EMPHASISED THAT HE WAS SUGGESTING THAT A WORKING GROUP SHOULD BE SET UP TO STUDY FACTS OF TEXTILE TRADE IN ALL FIPPES AND AT ALL LEVELS OF PROCESSING WITHOUT PREJUDICE TO WHAT ACTIC, IF ANY, SHOULD BE TAKEN AFTER COMPLETION OF STUDY, HE DID NUT PUT FORWARD THE TERMS OF PEFERENCE PROVISIONALLY AGREED BY INFORMAL GROUP (MY 42 SAVING, NOT TO ALL) NO DOUBT BECAUSE JAPAN HAD NOT CONFIRMED THEIR ACCEPTABILITY.

2. ON TIMING LONG HOPED THAT DELFGATIONS WOULD DE IN A POSITION TO AGREE TO SET UP THE WORKING GROUP AT NEXT COUNCIL,, PROBABLY TOWARDS THE END OF JUNE. THE SECRETAPIAT WOULD ISSUE A BACKGROUND PAPER WITH DRAFT TERMS OF REFERENCE. THE W G'S REPORT WOULD, IT WAS HOPED, BE CONSIDERED AT THE NEXT SESSION OF CONTRACTING PARTIES

(PROPOSED FOR NOVEMBER).

3. REACTIONS WERE GUARDED. FINLAND (FOR THE FIVE NORDIC COUNTRIES), CANADA, POLAND AND EGYPT ALL UPGED BROAD TERMS OF REFERENCE, I E NOT EXCLUDING THE EXAMINATION OF SOLUTIONS. ISRAEL PROPOSED THAT A PANEL OF INTERNATIONAL EXPERTS RATHER THAN COVERNMENT OFFICIALS SHOULD EXAMINE THE FACTS BUT LONG FOURED COLD WATER ON THIS IDEA. SPAIN ASKED IF IT WAS INTENDED THAT MUA-CPS SHOULD BE INVITED TO ATTEND (THEY PROBABLY HAVE MEXICO IN MIND). THE US IN A VERY BRIEF INTERVENTION SAID CKLY THAT THEY AGPEED WITH THE D G'S PROPOSAL THAT A W G BE SET UP AND WITH HIS DESCRIPTION OF ITS FUNCTIONS.

4. JAPAN, IN A COMPARATIVELY LONG STATEMENT SAID THAT PROPOSAL WAS OF THE UTMOST IMPORTANCE, THE L T A CONTINUED AFTER TWO EXTENSIONS THOUGH, AS ORIGINALLY CONCEIVED, IT WAS TO HAVE BEEN A TEYPORAPY MEASURE. THEY WERE CONTINUING FESTRICTIVE TRENDS IP TEXTILE TRADE NOT IN CONFORMITY WITH SUCH G A T T PRINCIPLES AS THAT ACTION SHOULD BE TAKEN ONLY WHEN INJURY WAS CAUSED CR THREATENED. IT WAS ESSENTIAL TO THE FUTURE OF THE GATT THAT TRADE BE GOVERNED BY THE PRINCIPLE OF FAL! COMPETITION. THE W G SHOULD (A) ANALYSE THE CURRENT SITUATION, (B) REVIEW PROBLEMS IMPEDING THE DEVELOPMENT OF TRADE IN TEXTILES (C) IDENTIFY AND ANALYSE INJURIES, (D) APALYSE STRUCTURAL CHANGES, (E) STUDY ADJUSTMENT POLICIES.

5. INDIA STRESSED THAT DESPITE PRODUCTION SHIFTS TOWARDS AWFS COTTONS WOULD CONTINUE TO BE OF VERY GREAT IMPORTANCE FOP MANY YEARS TO COME AS A SPECIAL PROELEY FOR SOME DEVELOPING COUNTRIES. INDIA HOPED THAT THE FORTHCOMING MEETING OF THE COTTON TEXTILES COMMITTEE WOULD PPCVITE PPCPTUNITIES FOR INFORMAL DISCUSSION ON WORK OF NEW GROUP.

MASON

[REPEATED AS REQUESTED].

INTERNATIONAL TRADE DISTRIBUTION: COMMODITIES DEPT

EcdcBode

CONFIDENTIAL

разгру

Page 120Page 121

Share This Page