TNAG-0142-FCO40-178-Long-term-policy-on-International-trade-in-textiles-1969 — Page 126

نا

CONFIDENTIAL

the L.T.A. (which is discriminatory), and what has brought

these issues to a head now is pressure for similar dis-

criminatory provisions to cover non-cotton textiles.

(11) To afford them some latitude in dealing with domestic

pressures (often political), the major importing countries.

will not agree to terminate the present discriminatory

arrangements for cotton textiles. Rather will they press

for similar arrangements for non-cotton textiles as the

price for foregoing the existing practice of reaching

"voluntary" restraint arrangements in non-cotton textiles

with individual countries whose exports they consider pose

a threat.

5.

In Hong Kong's view a GATT Working Party would be more like?

to respond to these pressures from major importing countries an (if it did not recommend an L.T.A.-type agreement to cover non- cotton textiles) more likely to incline towards recommending an

end to non-discriminatory application of Article XIX than to

restrict the occasions on which it could be used. If this

happened, it could produce a situation where developing countries

like Hong Kong were discriminated against and where import control

and cut-backs in trade were the rule, not only in textiles but

across the board in a wide variety of manufactured products.

would be much more in Hong Kong's interest: to continue the

existing arrangements whereby, as a result of bilateral

negotiations under Article XXII, Hong Kong gives voluntary

undertakings to restrain its exports in particular products

where these pose problems for the importing country. Such

6

CONFIDENTIAL

It