more efficient and modern units in their domestic industry
and not by imports at all. The proposed burden for Hong
Kong was out of proportion to the negligible evidence of
damage to the U.S. textile industry.
›
Hong Kong was not prepared to negotiate an overall
bilateral agreement on textiles, but.- if the United States
had a particular problem - Hong Kong would be ready to
discuss it within the frame-work of the GÄTT but without
commitment. It was explained to Hr. Stans that Hong Kong
had, on occasion, been prepared to concede restraint on
individual items where the importing country had advanced
a convincing case that Hong Kong's exports of those items
were doing real damage to the relevant sector of the
domestic industry and Hong Kong's share of the country's
imports was substantial.
Board of Trade View
We think that the Board of Trade are broadly in agree-
ment with our view, although there is some division of
opinion on tactics. Industries I Division (responsible for
the U.K. te: tile industry) have prepared a draft paper,
***
based mainly on American statistics, and intended to be
handed to the Americans – and to the EEC and West European
Governments in order to demonstrate the weakness of the
American economic case. However, the paper seens 111 judged
in acknowledging the existence of an American textile problem,
in economic terms, in respect of certain garments. We also
think that it would be tactically unwise for us to take the
initiative in re-opening the matter with the Americans in
No comments yet.
Private notes are available after approval.