6
It
this is the only provision of the MFA which gives an importing country the right to demand restrictions, but that right exists only' if the
requirements are met. Article 4 is a different matter altogether.
provides for mutually acceptable agreements, but there is a widespread belief that Article 4 confers rights too and that, if an exporting country jibs at the terms offered, the importing country has a right
to restrict trade under Article 3. This is not so.
H
It has been suggested that an importing country could accept a renewed MFA without change but make a statement in the Textiles
Committee of its intention to fix "global" ceilings and then to negotiate
bilateral quotas within these ceilings. This is in our view tantamount
to acceding to an arrangement while saying at the same time that you
do not intend to abide by it, and it seems to me to raise the question
of whether the participating countries can accept participation on such terms. If anything like this comes up in the Textiles Committee, I think we must all speak out against it, otherwise our silence will be taken to mean acceptance and our positions in subsequent bilateral negotiations
will be even weaker than they are at present.
I hope that what I have said will provoke a useful discussion
of the important and complex issues confronting us. I have great pleasure
in declaring this Seminar open.