TNAG-0142-FCO40-178-Long-term-policy-on-International-trade-in-textiles-1969 — Page 122

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were not extended beyond the end of 1971. This is because,

if other developed countries continue to restrict imports by

quantitative controls while we rely only on the tariff, the

goods which fail to get into other countries might well be

diverted to us notwithstanding our tariff barrier. On the

other hand, it seems most unlikely that other developed countries

will be ready to give up the system of control which they now

operate under the long term arrangement.

40 In these circumstance, the paper seems to be right in

concluding that, (however reluctantly), we must acquiesce in the

extension of the long term arrangement which in any case we

ourselves need up to the end of 1971. It is also right to

seek to achieve improvements in the arrangement, though this

may be a delicate matter if we have indicated that we think that

the right solution is to dispense with the agreement altogether.

5. The real difficulty arises over the suggestion that at some

appropriate stage, after taking soundings of other @overnments,

we might suggest that a working party should be set up to review

the whole question of securing an acceptable method for

regulating international trade in textiles (both cotton and

non-cotton). Our objective would be to secure agreement to a

system which would make it harder for importing countries to

impose quantitative restraints on imports, whereas other

countries (particularly America) would be wanting arrangements

which would make it easier for importing countries to impose

At the least, they would be unlikely to want to

give up the flexibility of the present arrangements.

restraints.

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