This was why the United Kingdom, along with Gargany, Japan, responded positively
the initiative taken
he five
by the Governor for the United States, Secretary Baker. countries together committed themselves at their zeeting
La reinforce
22 September
32
are already bringing about steady growth and declining inflation. to resist the forces of protectionism, and to take such action as might be necessary to secure an early adjustment in the exchange rate between the dollar and other major currencies.
But resisting new protectionist pressures, although of the fire importance, is not enough. We urgently need pore progress in rolling back longestablished barriers
barriers and in
in extending the scope of the open trading system. The best guarantee we have against the erosion of free trade is to make further progress in the
multilateral
context of the GATT. This is in the interests of
all of us • developing and industrial countries alike. We should
all be concerned about the way non-tariff barriers and othET discriminatory practices have grown up, precisely when multilateral action in successive GATT rounds has reduced formal tariff barriers.
Such measures are as harmful to the developing countries
the industrialised world.
We all have much
much to gain from freer trade just as we all kame something to contribute. For this reason
reason the UK strongly supports the proposed new round of trade negotiations. A good start made at the special GATT meeting last week. When the Contracting. Parties meet in November and in the negotiations which I hopa
vill follow, my Government will support the broadest possible. agenda.
We need also
also to
to look behind the present imbalances of trade which
have given rise to protectionist presures, to get at and-to
eliminate the root causes. If I refer in particular to Us --and Japan it is because their major influence in the world
Means that their policies cannot be judged solely by domast
criteria.
As in other industrialised countries, United States noustary policy
aust be aimed at avoiding a resurgence of inflation.