either side in this situation, and may be able, by keeping our freedom of manoeuvre, to promote a compromise solution on the lines of our interests 1.e. a gradual phasing out of the CTA. But further consideration of our tactics will only
be practicable at a later stage.
Other Issues:
Extension of CTA to M.M.F.
15. The hypothesis that the GATT Textiles Committee will concern itself only with the prolongation of the CTA may be modified in two ways:
(a) The U.S. may propose the extension of the
CTA to other textiles.
(b) The prospect of terminating the CTA may be
the occasion for a discussion of the measures
which contracting parties may take if they find that imports cause injury to their domestic producers, We should ourselves consider whether we can serve our interests by promoting such a
discussion.
16. As for the first, it is by no means yet certain that the Americans will propose this. All the indications are that if they do they will enjoy the support of the Scandinavians, and perhaps the Canadians, only, and will meet the determined opposition of developing and all other developed countries (even if the textile industries of Europe express some support). No rapid outcome could be expected and the best that the Americans can probably anti- cipate is that a Fact-Finding Study of some kind should be set on foot. We could concur in this. This result might be some value in holding the Americans back from taking unilateral action of some kind contrary to the GATT, while at the same time enabling them to claim that they had set on foot international activity directed to meeting the Presidential Electoral commitments. Until American proposals are tabled it is hardly possible to anticipate in more detail how we might react to them. (U.K. interests in connection with the extension of the CTA to other textiles were considered in PCO paper (69)6 paras.14 and 15.)
Escape Clauses
17. As mentioned, the prospect of terminating the CTA may give rise to discussion of the measures which in its
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