TNAG-0142-FCO40-178-Long-term-policy-on-International-trade-in-textiles-1969 — Page 129

2.

and depending on the soundings which we had taken

as to the attitude of other countries, we might

suggest the setting up of a Working Party under ·

GATT to review the situation in regard to textiles

generally and to recommend the best ways of dealing

with it. I realise that this suggestion is

tentative at the present stage and that our tactics

will have to be decided in the light of developments

during the discussions. The attitudes of other

countries (particularly the EEC having regard to the

possibility of developments in regard to our

application to join the Community) will be important.

There are, however, obvious dangers in such an

initiative and while cur objective would be to

achieve a set of strictly observed criteria which

would keep quantitative restrictions to a minimum,

we might end up with something which made it easier

for quantitative restrictions to be imposed. This

would be unpalatable to us and could have very

serious consequencos for Hong Kong. For this

reason, I think that before we commit ourselves we

should perhaps have another look at the idea

}

of a Working Party when we have worked out much

more clearly what the terms of reference might be,

and what the outcome is likely to be.

4. As you know, the Hong Kong Government have

serious reservations about the implications for thea

of a policy of the sort proposed in the paper.

I do not suggest that we must change this policy

because of Hong Kong's objections. But I feel

that from our own point of view as well as that of