TNAG-0142-FCO40-178-Long-term-policy-on-International-trade-in-textiles-1969 — Page 97

Textilea: Terms of Reference of a "Working Party"

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We have it in mind (if the tactical situation at the Cotton Textiles Committee warrants it and after consultation with our principal partners) to propose the establishment of a Working Party "to review the situation and recommend the best ways of dealing with it." The object of the present paper is to attempt to elaborate these terms of reference.

2.

The terms of reference we might propose have to be determined

by the objectives we have in mind. These are:-

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(1) Negatively, to head the Americans off and provide

Mr. Stans with a face-saving device.

(ii) To remedy defects in the present situation, and in Particular (a) to ensure that the impact of exports from developing countries is reasonably shared between importing countries.

(b) to provide a consistent basis for

defensive action in future, related to objective

economic criteria.

3. The principal danger to be guarded against is that of giving the impression that it is to be made easier than at present for action restrictive of trade to be taken. In particular there is the risk of giving the impression that the intention is to arrive at something resembling the L.T.A. for non-cotton textilps.

4.

To minimise this risk it has been suggested that:

(a) The proposed Working Party should not be established by

the Cotton Textiles Committee but by the GATT.

(b) Its terms of reference should not be confined to textiles.

5. These points would certainly reduce the risk of the Working Party being oriented from the outset towards producing a new L.T.A. for non-cotton textiles. They contain the risk, however, of spreading the area in which uncertainty is created and thereby giving occasion for protectionist forces to raise their head,e.g.

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