TNAG-0142-FCO40-178-Long-term-policy-on-International-trade-in-textiles-1969 — Page 196

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Japan. The exception is the United States, but in this case the pressure is for more not less protection, and not only against Japan. The Canadians have

· restricted imports of a number of man-made fibre products from low-cost suppliers. Norway and Sweden have also become more protectionist in the face of increased competition in the garment field from Yugoslavia, Hong Kong and other developing countries: and the Six are showing signs of nervousness about competition in the man-made fibre field. No one has shown any desire to match our offer on generalised preferences.

5. The difference of opinion on what should be done about imports of textiles from the developing countries is likely to come to a head this year. The Americans want to impose restrictions on imports of all low-cost textiles, including imports from Italy and, possibly, the U.K. Canada has asked Hong Kong (i) to enlarge the restrictions on m.m.f. shirts to include polyester/polynosic and (ii) to extend the three non-cotton quotas for a further year. Norway is also likely to ask for an extension of the Hong Kong restrictions on imports of wool sweaters and m.m.f. blouses for a further year. The E.E.C. are also showing signs of wanting Hong Kong to restrict exports of non-cotton textiles, mainly to avoid the embarrassmen of having to tell the French that they must liberalise imports from Hong Kong when the Common Commercial Policy is due to come into force, on 1st January next.

6. The the United States Secretary of Commerce failed earlier this year to get other countries to agree to an international conference to discuss the extension of restrictions to non-cotton textiles. However, Mr. Stans is unlikely to let matters rest at that. Pressure will almost certainly be brought to bear on Japan, Korea, Taiwan and, possibly, Hong Kong to enter into bilateral agreements to restrict their exports to the United States. Progress in this direction will depend on how far the Americans get with the fact- finding study in which the Japanese agreed to