TNAG-0116-FCO40-152-Departmental-Briefs-For-Meetings--Visits-and-Foreign-Affairs-1969 — Page 28

FCO40 Hong Kong Department Records 聯邦事務部香港部檔案 All

had expired), the developing countries may well finally

settle for a renewal of the L.T.A if possible on more

generous terms.

The following are the main neacións

12 26th or the other hand –15 unenthusinticat--

why we dislike the Arrangement:

the prospect of continuing the present arrangements.—

-we-consider-that

(a) the L.T.A. has been a cloak under which a number

of coutries have been able to pursue a distinctly

protectionist policy on cotton textiles, and a

number of importing countries have taken advantage

of its provisions to keep imports from the developing

countries down to a very low level. The main

weaknesses are that the importing country is allowed.

to be judge of its own case: that the restrictions

are almost always discriminatory: and that Article 4,

providing for bilateral agreements, has sometimes

been used to deny the exporting countries their basic

rights under the agreement. The effect has been to.

increase the pressure on countries like the

United Kingdom which did not impose restrictions

·

+

until imports had taken over a large share of the

market.

(b) the U.K. interest is in getting other developed

countries to accept a much larger share of low cost

competition. The L.T.A. has not achieved this.

Whereas one-third of the U.K. market is now supplied

by low-cost imports, other major developed countries

have continued to keep the proportion they accept

down to a much lower lovel.

(c) since we intend to remove "our controls on

cotton textile imports at the end of.1971, the

blanket authority of the L.T.A. will no longer

be necessary to cover our actions.

(d)

we feel that quotas are in principle a less

satisfactory technique of control than tariffs.

They freeze, the existing pattern of trade, they

Kaura

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