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But of course there isn't going to be a total substitution
of imports by domestic production. There will be no restrictions on
imports from developed countries and althoug: there will be severe
restrictions on imports from developing coun ries, the quotas haven't
been reduced to zero.
I have little doubt that a simila: study in other developed
countries would produce similar results. It just happened that
Mr. Cable's article came to my hand as I was preparing this speech.
If Mr. Cable is right, and if the situation is similar
elsewhere, the Community's restrictive policy is not likely to
produce the effects expected of it. It's like putting a drug on
the market without doing any research on its effects. All the
patients will suffer: the developing countries, the developed
countries' consumers and indeed in the long run their textile
industries also.
However, the sad fact is that unemployment and the "flood
of imports" are for the time being linked in many minds.
So, we were faced with an EEC prepared to ignore the MFA,
prepared even to disregard the formula of "reasonable departures"
from the MFA, which the Community itself had supported in the Textiles
Committee in July. The Departures they sought were aptly described
by one developing country representative as not reasonable but radical.
Despite the Community's attitude, the Hong Kong team was
determined to act in accordance with our international obligations
and we did so. We refused absolutely to negotiate on any point that
could not be justified under the MFA or GATT and, in the end, the
Community had to impose some unfavourable elements in the package
upon Hong Kong.
/So