TNAG-0142-FCO40-178-Long-term-policy-on-International-trade-in-textiles-1969 — Page 100

be to possible alternative approaches which others may suggest. One possibility is that reference may be made to a remark by the GATT Secretariat in their proposals for handling the Non- Tariff Barrier exercise (Spec (68)115 of 10/9/69). This is:-

"Some notified barriers appear to be the result of a lack of multilateral surveillance of compliance with inter- national obligations. Bilateral consultations may not always be adequate to avoid situationo viewed by the weaker trade partner as constituting barriers to trade, notably in the case of so-called "voluntary export restraints" or discriminatory restrictions. In such cases a permanent effective consulta- tive mechanism may reduce or eliminate the barrier."

At first sight this is in line with our idea that the growth of voluntary restraint arrangements in textiles might be controlled by subjecting them to some international surveillance. It should be borne in mind, however, that an objective which the Japanese are pursuing in the Non-Tariff Barriers exercise is to bring under discussion in GATT the bilateral restraints which they apply, under duress, to their exports of various items to a number of countries, with the hope that under "international surveillance" the countries towards which they exercise these restraints would find it more difficult to insist on their retention, This suggests that we should not ourselves at the outset make or support proposals for international surveillance of voluntary restraints, but should wait to see whether such proposal proves likely to be on balance advantageous to us.

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