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ENVISAGE. IF YOU WERE TO SUCCEED IN ESTABLISHING THEM ONE OF TWO RESULTS WOULD, AS FAR AS I CAN SEE, INEVITABLY FOLLOW. EITHER, IF THE EXPORTING COUNTRIES ACQUIESCED, THE DISCIPLINE OF CATT WOULD DE UNDERMINED BY A PRECEDENT WHICH PROTECTIONISTS THE WORLD OVER
WOULD SEIZE UPON., OR THOSE COUNTRIES WOULD DECIDE TO EXERCISE THEIR GATT RIGHT TO SEEK OR TAKE COMPENSATORY MEASURES.
EITHER WAY SERIOUS DAMAGE COULD BE DONE TO INTERNATIONAL TRADE RELATIONS AND TO THE DEVELOPMENT OF A LIBERAL AND ORDERLY SYSTEM OF INTERNATIONAL TRADE. I DO NOT BELIEVE THAT THIS IS WHAT YOU
WOULD WISH TO HAPPEN.
THE HONG KONG GOVERNMENT HAVE JUST REPLIED TO THE UNITED STATES GOVERNMENT'S PROPOSAL THAT, WHILE THEY CANNOT AGREE TO COMPREHENSIVE RESTRAINTS, THEY ARE WILLING TO DISCUSS REMEDIES IN CASES WHERE EXPORTS TO THE UNITED STATES THREATEN SERIOUS DAMAGE TO AMERICAN PRODUCERS OF SIMILAR PRODUCTS. SINCERELY BELIEVE THAT MEANS COULD BE FOUND IN THIS WAY OF HELPING THOSE
SECTORS OF YOUR INDUSTRY WHICH MAY BE IN DIFFICULTIES OWING TO IMPORTS. IT MAY NOT BE THE ONLY WAY., THE BRITISH GOVERNMENT HAVE
ALREADY INDICATED THAT THEY WOULD BE READY TO DISCUSS IN GATT
POSSIBLE IMPROVEMENTS IN THE ARRANGEMENTS FOR DEALING WITH DISRUPTIVE:
IMPORTS IN GENERAL. BUT I HOPE YOU WILL AGREE ON THE IMPORTANCE
OF FINDING SOME COURSE WHICH WILL REAFFIRM THE PRINCIPLE OF LIMIT-
ING PROTECTION TO THOSE SECTORS OF INDUSTRY WHICH ARE SUFFERING OR ARE THREATENED WITH SERIOUS INJURY./.
FCO PASS ROUTINE HONG KONG AND SAVING TO TOKYO UKMIS GENEVA.
MR.FREEMAN
[REPEATED AS REQUESTED]
INTERNATIONAL TRADE DISTRIBUTION
TION
H.K.D.
COMMODITIES DEPT.
AMERICAN DEPT.
appletong mas mangarapan ve z
CONFIDENTIAL
ADDITIONAL DISTRIBUTION H.K. INTERNATIONAL TRADE
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