Item 3 THE GATT TEXTILES ARRANGEMENT
1.
The composition and operational procedures of the Textiles Surveillance Body (TSB) continue to be matters of discussion and dispute. The latest situation is summarised in Geneva Saving Telegram No 28 (copy attached) which records the outcome of the GATT Trextiles Committee's meetings of 26-28 March. Messrs Dorward and Pears on took part in these meetings. The composition of the T33 has been settled, with a display of reluctance on several sides including the Community's, for the remainder of 1974. Korea will be representing the "low-cost" Far Eastern exporting countries and Japan will also have a seat. Our main concern now is that the TSB should function in an independent and objective manner; it should not be an organisation in which the interests represented should grind their own axes or attempt to formulate new commercial policy. The merbers' first responsibility should be to uphold the provisions of the Textile Arrangement. Clearly the Body will have an important conciliatory role but this should not obscure its duty to form an objective view of the restraints it examines,
On the whole, our view of the TSB is similar to Hong Kong's. We both have a major task in seeing that our respective associates do not retreat too far from the principles of the Arrangement and from supporting the TSB in seeing that these are respected.
2.
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