TNAG-0142-FCO40-178-Long-term-policy-on-International-trade-in-textiles-1969 — Page 136

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RESERVED A RIGHT TO MAINTAIN OR REINTRODUCE QUANTITATIVE RESTRICTIONS AFTER TARIFFS ARE IN FORCE.

4. I AM AFRIAD WE CANNOT FORGET THAT THE ORIGINAL INTENTION OF THE CTA WAS EQUALLY TO PROMOTE THE EXPANSION OF TRADE IN TEXTILES. LIBERALISATION BY OTHER COUNTRIES WAS INDEED THE CARROT HELD OUT BY THE AMERICANS. THE C T A HAS HAD DISAPPOINTING RESULTS IN THIS RESPECT, BUT THE BUILT-IN GROWTH RATE DOES OFFER SUBSTANTIAL CONTINUING EXPANSION. FOR US, THEREFORE, THERE ARE CONSIDERABLE RISKS IN THE ABANDONMENT OF THE C T A AFTER IT IS NO LONGER NEEDED BY THE U.K. UNLESS IT IS REPLACED BY SOME OTHER ARRANGEMENT OFFERING REAL SAFEGUARDS AGAINST DESTRUCTIVE AND DISORDERLY PROTECTIONISM. YOUR POLICY PROPOSALS DO NOT SEEM TO OFFER ANY REASONABLE PROSPECT OF THIS.

5. NOR DO YOUR PROPOSALS IN THE CASE OF M M F (SIC) SEEM LIKELY TO PROVIDE ADAQUATE SAFEGUARDS OR OPPORTUNITES FOR EXPORTING COUNTRIES (PARTICULARLY SO-CALLED LOW-COST COUNTRIES) NOR TO LEAD TO ANY GREATER ORDER, AT LEAST ON A LIBERALISED BASIS. THE VOLUNTARY RESTRAINT SYSTEM DOES OFFER OPPORTUNITY FOR GENUINE NEGOTIATION AND WE HAVE BEEN ABLE TO USE IT SO FAR TO ACHIEVE IN MANY CASES MORE SUBSTANTIAL PENETRATION OF MARKETS THAT WE HAVE BEEN ABLE TO ACHIEVE IN COTTON. THERE SEEMS LITTLE LIKELIHOOD, IN ANY CASE, OF THE GATT BEING PREPARED OR ABLE TO OUTLAW VOLUNTARY RESTRAINTS SEMICLON, THEY ARE ADMISSABLE UNDER ARTICLE. 4 OF THE C T A. I WELCOME, OF COURSE, IN PRESENT CIRCUMSTANCES, THE LAST SENTENCE OF PARA. 7 OF THE NOTE.

6. IT SEEMS TO ME THAT THE DIVERGENCE OF OUR INTERESTS AND POINTS OF VIEW IS SO WIDE THAT THERE IS LITTLE POSSIBILITY OF FINDING COMMON GROUND AT THIS STAGE AND THAT THERE ARE THEREFORE GOOD

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