14
2. We recognise that we shall encounter a good deal of
opposition if we decide to pursue this line, but taking
the broader long-term view we think there is a good deal
to be said for it.
15 On non-cotton textiles, while we cannot for a
moment subscribe to the U.S.' idea of extending the
coverage of the L.T.A. we recognise that the growing
success of the developing countries in this field is
already a cause for concern in a number of developed
countries, and these difficulties are likely to intensify
as time goes on. Already a number of developed countries
Canada, Sweden, Norway and formerly W. Germany
have felt
constrained to seek voluntary restraint agreements with
low cost suppliers such as Hong Kong, Taiwan and Korea.
-
This is a development we dislike partly because restraint
arrangements between others tends to. increase pressure on
the U.K. market, and partly because we have doubts about
of
Some
the justification for control in some the cases.
should be referred to
very
importing countries seem to have
different standards
from our own in judging whether disruption of the domestic.
market has occurred; indeed, if we used their criteria,
we ourselves would already have built up a network of
restrictions to protect sectors of our man-made fibre
and knitwear industries. We believe however that
"creeping bilateralism" of this kind which may well
spread from textiles into other fields is a harmful
departure in the development of world trade.
htt
In our
view, where problems arise they should be dealt with
strictly in accordance with the GATT.
me feel the funsulem is one which Here too the solution seems to lie-in-an-improved-
ake hana.
above.
a GATT Warking Party
XiX procedure, where any bilateral-restraint
-ørrangements would have to be disclosed to and specífically
such The establishment ofje Working
considered in the GATI,
durty-to-consider how best this might be done fore prrat-
Panty
bove might provide the U.S.A., with the face-saver she
needs, given that she is very unlikely to obtain agreement
to extas ie coverage of "LA KITAAL
/to
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