TNAG-0142-FCO40-178-Long-term-policy-on-International-trade-in-textiles-1969 — Page 161

13.

that the fact that such agreements have been reached shows that it is possible to deal with the problems as they arize within the existing

GATT framework.

Amendments to the LTA which might be considered are., for example:

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(a) deletion of Article 2 (there is no case for

still maintaining residual restrictions which were in 1962 to be removed "progressively..........

with a view to their elimination as soon as

possible;

(b) prohibition of action under para. 3 of

Article 3 unless imports have reached a specified level of consumption;

(c) weakening of Article 6(b) to make it possible

for substitution cases to be taken a little more easily, provided it is made clear that quotas for the substitute product should be rolled in with the quotas for the products for which they are a substitute; (d) amendments of the definition in Article 9

to catch more blenda, so taking some of the heat out of the American textile lobby or

at least weakening the American Government's position;

(e) inserting a xxxitx mandatory minimum growth

factor in Annex B.

The BOT paper appears to have been written on the asswaption that H.M.G. has already set its face against quotas by its decision on the fextile Council Report

on cotton textiles. But the President's statenent

says:

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"From that date (1.Jan. 72) the existing general quota system would be terminated; and the Government would consider the use of quotas only on particular products under the LTA."

Sofar as the British Textile industry is

concerned this surely presupposes the extension of the

LTA and makes it xxt clear that H.M.G. will be

prepared to consider new quotas after 1.Jan. 72. It would surely be difficult for H.M.G. to respond to the internal pressure for quotas thst may well arise, if,

before then, it has taken an international stance

against quotas. Furth rmore the EEC common commercial policy regulations made late in 1968 clearly contemplate the use of import quotas against particular countries,

1.e. not in accordance with Article XII.