TNAG-0145-FCO40-181-Exports-of-textiles-to-United-States-of-America-1969 — Page 178

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PARTS OF HIS PRESENTATION. THIS PRODUCED A BAD-TEMPERED REACTION AND HE DEMANDED THAT WE CEASE TO CROSS-EXAMINE HIM AND THAT WE ''PRESENT OUR CASE'' EXCLAMATION. THIS LATTER WAS DONE ON FAIRLY ORTHODOX GENERAL LINES IN BOTH THE POLITICAL AND THE ECONOMIC ASPECTS.

3. WE COULD ELICIT NO VERY EXPLICIT REPLY TO THE QUESTION WHAT HE ACTUALLY WANTED US TO DO. HE HAD EARLIER STATED THAT THERE WERE ONLY THREE COURSES OF ACTION OPEN, MULTILATERAL AGREEMENT, BILATERAL AGREEMENT OR UNILATERAL U.S. ACTION, AND IGNORED OUR SUGGESTION THAT THE MOST APPROPRIATE AND EFFECTIVE COURSE WOULD BE AMENDMENT OF ADJUSTMENT ASSISTANCE PROVISIONS IN U.S. DOMESTIC LEGISLATION, SUGGESTED BY STANS HIMSELF TO JOINT ECONOMIC COMMITTEE OF CONGRESS IN MARCH 1969. WE MADE IT CLEAR THAT WE COULD NOT ACCEPT ANY MULTILATERAL SOLUTION ON CTA LINES, ALTHOUGH WE DID NOT IN SO MANY WORDS REJECT A MULTILATERAL APPROACH AS SUCH. WE REJECTED CATEGORICALLY ANY BILATERAL AGREEMENT INVOLVING GENERAL RESTRICTIONS OVER THE FIELD SEMICOLON BUT EXPRESSED OUR CONSTANT WILLINGNESS TO CONSULT WITH OUR TRADING PART- NERS ON ANY SPECIFIC AND SHARPLY DEFINED AREA WHERE A DEMONSTRABLE PROBLEM OF ''DISRUPTION' AROSE, WITH A VIEW TO AGREED ACTION (ALTHOUGH WE WOULD REQUIRE SAFEGUARDS AGAINST DEFLECTION OF TRADE WHERE WE WERE NOT THE ONLY SUBSTANTIAL SUPPLIERS OR POTENTIAL SUPPLIERS). THIS READINESS WAS MANIFESTED BY OUR ARRANGEMENTS WITH CANADA, ETC. ALTHOUGH THEY WERE OF A VERY MODEST NATURE. THEY MADE SUPRISINGLY LITTLE PLAY WITH THIS, POSSIBLY REALISING THAT THE PRECEDENTS SET ARE UNFORTUNATE FROM THEIR POINT OF VIEW, RAISING BUT NOT IN FACT PURSUING THEIR ALLEGATION THAT THEY HAD NOW A STRONG CASE ON WOOLLEN KNITWEAR. THEY DID HOWEVER ASK IF. WE WERE PREPARED NOW TO AGREE TO NEGOTIATE ON THIS. WE REFUSED, DISTINGUISHING IN THIS CONTEXT BETWEEN CONSULTATION AND NEGOTIATION.

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THEY CLAIMED THAT THE CTA HAS OPERATED TO HONG KONG'S ADVANTAGE.

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WE REJECTED THIS, POINTING OUT THAT THE IMPORTING

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