TNAG-0142-FCO40-178-Long-term-policy-on-International-trade-in-textiles-1969 — Page 110

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were a bit stricter?

4

This carries awful dangers of a reversion to general protectionism. In other words if the chances are that the Article XIX policy would lead to a deterioration in the situation, it's not worth pursuing. If the idea was welcomed only by the importing countries, this would be a pretty sure sign that nothing good would come out of ita

16.

I have writven at such length because I honestly believe as I said in the final paragraph of my Preliminary Comments that the policy that Hong Kong has proposed would be in the interests of both Britain and Hong Kong. In theory I see no reason why we should not have different policies, that is to say that I see no logical connection between Britain's responsibility for Hong Kong's external relations and the suggestion that our policies should be identical. I see no reason

why a British spokesman should not be able to say 'This is our policy as regards Britain itself and this is our policy as regards our dependent territories But I see no need for this to arise in the present case.

17.

I might add that I have seen David Sellers' draft inter- vention for FCO Ministers, and agree with it. it and the draft of this letter to John Cowperthwaite before he left

I was hoping to send but I haven't been able to manage it. However, I don't think he would

be in serious disagreement with it.

18.

And since I have written at such length, I think I had better try and summarise, as follows :

Britain's burden of low-cost textile imports is in cotton;

Cowok wäre?

for 24 present hann quaimo too.

(i)

(11)

This burden is not attributable to the LTA or to its abuse by other countries;

Kiii

(LV)

(v)

No evidence has been produced to show that the use of the LTA by other importing countries has deflected trade to Britain;

Britain's imports of unf have not yet caused 'serious injury' and to the extent that they may pose a future threat, this is due to EFTA duty-free entry;

Article XIX of the GATT cannot be used against EFTA members;

(vi) Britain has already decided to bring the tariff treatment of cotton broadly into line with unf from 1 January 1972; (vii) Britain cannot use Article XIX of the GATT on textiles so

long as the LTA is in existence because

(a) the major share of imports is held by cotton, which

should be dealt with under the LTA,

(b) imports of mmf (except perhaps from EFTA) would not

justify it;

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/(viii) If