TNAG-0142-FCO40-178-Long-term-policy-on-International-trade-in-textiles-1969 — Page 202

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It is thought that

if the

18.

On the last occasion the Agreement was extended for a period of three years and it is unlikely that the developing countries would agree to any longer period on this occasion. The U.K. has no intercot in prolonging the Agreement after 1st January, 1972 when the tariff on imports from the Commonwealth will

come into effect and / is by eng awe

and/if any c

Agrcenont was allowed to expire on 30th September, the exporting countries would probably agree to our continuing the quotas for a further year. The alternative would be for us to invoko Articlo XIX of the G.A.T.T. to Luposo non-discriminatory restrictions, which from tho developing countries point of view could mean our taking back licensing control into our own hands.

I by the Textile Lounal 19.

On the other hand, wo would be accused of bad faith if we actually took the lead in the 0.7.C. in opposing a continuation of the C.T.A. after 1970. Cur best line would therefore be to :-

*

a)

join with Japan and the developing countries in criticising the way in which the C..A. has been implemented by the developed countries, and

b)

propose as a compromise the extension of

the C... for a further period of three years during which the member countries would undertake :-

(1) not to impose additional restrictions

on imports of cotton textiles except under Article XIX of the G.A.2.2., and

(11) agree to an annual review of their

existing restrictions with a view to their abolition by 30th September 1973, it being understood that any restrictions remaining in force at the end of that time would have to be applied non- discriminatorily under Article XIX of tho G.A.F.T.

/20.