TNAG-0135-FCO40-171-Tariff-preferences-for-developing-countries-1969 — Page 146

CON/DEN..

(a) On the other hand, it was suggested that, since Article XIX provided for non-discriminatory action, the United States might, in difficulties, resort to quotas which could hit our textile exports. However, if all the major developed countries imposed restraints, we should have the right to do the same and our import saving could be greater than our export loss. Alternatively, even if the Working Party were to recommend a solution linked to Article XIX, other countries might prefer to continue with bilateral voluntary restraint arrangements and there was no power to prevent this. hope would be that arrangements under Article XIX would eventually be recognised as the most appropriate way of dealing with excessive

textile imports.

The

(e) If our proposals for a Working Party were adopted, we should have to accept that voluntary restraint arrangements would continue to be used pending the Working Party's report, since these were the only viable measures available, and we could not therefore prevent Hong Kong from extending or renewing their voluntary restreint agreements, though particular proposcls could be considered on their

merits.

(f) It would be desirable to discuss in advance with the European Economic Community (EEC) countries, the line that we would be taking, particularly since our negotiations to join the BEC were likely to begin during the currency of a renewed LTA and we might have to change Jur arrangements for textiles.

THE CHAIRMAN, summing up the discussion, said that the Committee felt that the United Kingdom should not take the lead in the discussions in the GATT Cotton Textile Committee but that we might take the line that there was much to be said for the view that the LTA should not be renewed because it had not proved satisfactory in operation. However, because of the attitude of other developed countries and of the practical difficulties of abolishing quotas before our tariff policy came into force in 1972, we should accept a

We would wish in that case renewal of the ITA for two to three years.

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CONFIDENTIAL