Republic's initiative).
It is precisely for these reasons of principle that we have
some misgivings about the increased application of voluntary
export restrictions. Moreover, there is a large number of
grave objections to the USA's proposed trade policy. We shoula
therefore also reject it ourselves. These misgivings Talks
within our Ministry as well as with other Govt. Departments
have shown that there is agreement on this question.
anxieties are not only directed against the concrete American
ideas, but also against the use of voluntary export restraint
itself because of the general importance which attaches to it.
1. Economic Misgivings
Our
a) Any export restrictions imposed by certain countries may,
since they imply the application of quotas, be compared with
economically discriminating import quotas. The economic affect
of both instruments is negative. In their capacity as regulating
factors on the market, prices are made ineffective and competition
is destroyed by the quantitative restrictions.
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b) If the pressure of textile imports were to be shifted from
the USA to the European countries, the main country affected
in addition to Great Britain would be the Federal Republic.
It is not easy to advocate this switch from the economic point
of view, especially if it takes place suddenly. The German
textile industry is already undergoing a painful process of
readaptation.
2. Objections from the point of view of Trade Policy.
a)
Voluntary export restraints are incompatible with our
traditionally liberal trade policy. They impede the development
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