CONFIDENTIAL
GUARD
WASHINGTON TELEGRAM NO.1129 TO FCO.
-3-
WE MIGHT TRACE THE PROGRESSION BY WAY OF ILLUSTRATING AND
EMPHASISING OUR FEAR OF THE WIDER CONSEQUENCES.
6. IN FOLLOWING THIS LINE IT SHOULD NOT BE NECESSARY FOR THE U.K.
TO COMMIT ITSELF TO REJECTING THE U.S. PROPOSALS OR
TO RESISTING DISCUSSIONS IN GATT OUTRIGHT. FOR THE LINE TO BE
CREDIBLE, HOWEVER, IT WOULD NEED TO BE MADE CLEAR THAT THIS MIGHT HAVE TO BE H.M.G.'S DECISION IN THE END, AND IT MIGHT BE THE RIGHT TACTICS ACTUALLY TO TAKE THIS DECISION IN THE END, BECAUSE WE BELEIVE THAT, EVEN IF DIRECTLY REBUFFED, THE U.S. GOVERNMENT
WOULD STILL SHRINK FROM VIOLATING GATT. FOR THE SAME REASON OUR
PRESENT INCLINATION WOULD BE FOR AVOIDING GATT DISCUSSIONS
RATHER THAN SETTING FOOT ON SUCH A SLIPPERY SLOPE (MY TEL NO 822). (AS REGARDS THE ARTICLE XXII DIFFICULTY RAISED IN
UKMIS GENEVA TEL NO 226, PARAGRAPHS 3, WE WONDER IF IT COULD
BE ARGUED THAT THE ARTICLE IS NOT APPROPRIATE TO DEAL WITH A
PROBLEM WHICH, ALMOST ON THE U.S. GOVERNMENT'S OWN ADMISSION, HAS
NO REALITY EXCEPT IN DOMESTIC POLITICAL TERMS).
7. WE HAVE ALSO TO THINK OF HOW THE ADMINISTRATION COULD CLIMB
DOWN. IT WOULD BE MUCH THE BEST IF THEY DECIDED TO REPAY THEIR
ELECTORAL DEBTS TO THE SOUTH (WHICH LIE BEHIND THE TEXTILE PROMISES)
IN WAYS UNCONNECTED WITH TRADE. BUT IF NECESSARY WE COULD CONCEDE
THAT THE U.S. GOVERNMENT WOULD BE FREE AS INDEED THEY ALWAYS HAVE
BEEN TO RAISE SECTORAL DIFFICULTIES IN GATT UNDER ARTICLE XIX,
IF THEY COULD SHOW SERIOUS INJURY TO U.S. PRODUCERS. IT WOULD BE AS
WELL NOT TO BE TOO SPECIFIC ON THIS SCORE, BECAUSE IT WOULD BE
PREMATURE TO LET THE AMERICANS THINK THAT WE WOULD ACCEPT WITH
A R
EQUANIMITY A RELAXATION OF ESCAPE CLAUSE CRITERIA. THIS IT IS GENERALLY ARGUED HERE, WOULD BE NECESSARY TO ENABLE THE U.S.' GOVERNMENT TO TAKE ADVANTAGE OF AN ARTICLE XIX WAIVER AND IS
ALREADY BEING PEDDLED AS A FACE SAVING SOLUTION BY OPPONENTS
OF QUOTAS HERE.
/ALTHOUGH
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