agreed that the Community should seek immediate similar
arrangements with Japan, Taiwan and South Korea, with
somewhat different product coverage.
2. At the meeting on 22 January we propose to take
the following line:
(a) New restrictions on a Community basis should
(b)
(c)
conform to the principles which the Community
would like to see internationally accepted, in a
successor to the LTA or amendment to GATT
Article XIX.
There should be objective criteria for the
recognition of market disruption.
Restrictions should be of limited duration and
have a specific purpose, related to a particular
sector of industry, eg creation of stable
conditions for capital investment and increase of
production to economic levels, or minimisation of
unemployment and commercial losses during run-down.
(d) Product coverage should be selective and confined
to areas in which substantial and increasing
imports are causing or immediately threatening
to cause real damage to Community industry,
(e)
(f)
eg loss of jobs, falling market share,
cancellation of investment plans.
Restrictions should cover substitutable products
on a multi-fibre basis.
Based on the above and on our long experience of
Hong Kong including recent successful negotiations
on woven polyester cotton fabrics and made-up
goods, we believe that Hong Kong will and should
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