TNAG-0159-FCO40-195-Export-of-textiles-to-Austria-1969 — Page 12

CONFIDENTIAL

о

Mr. Carter

Mr. Stewart Klavi/12.

The 1962 Austrian anti-dumping legislation con- tai ned provisions dealing with:

(a)

dumping (properly so-called)

(b) Low cost imports.

Provisions in (a) were broadly compatible with GATT, but in 1967 new legislation was introduced in which these two aspects were combined in the one Act and there is considerable doubt as to whether this new legislation is compatible with the GATT,

2. Following the new laws, the Board of Trade asked our Ambassador in Vienna (Sir Anthony Rumbold) to seek a formal assurance from the Austrians that the new provisions would not be applied inconsistently with the GATT. He evaded this request by arguing that it was wrong for us to express our doubts as to whether the Austrians intended to honour their international obli- gations. In particular, he felt that our best course of action was to await instances of the provisions being applied contrary to the GATT. The Board of Trade acquiesced, rather than agreed, with Rumbold's point of view. HMG is also reluctant to pursue this question in the GATT because:-

3.

(a) we believe that the legislation is directed

against low cost imports from Portugal, and we have a voluntary arrangement with Portugal for restrained imports which is not strictly in accord with the Stockholm Convention. The Austrians are aware of this arrangement, and if we were to raise the Austrian anti-dumping measures pub- licly it might bring this to light, with consequent embarrassment,

(b) Some of the features of the Austrian legis- lation have been carried over from earlier

(૦)

legislation which was not criticised in the GATT.

we should not wish to pillory an EFTA

partner.

However if other countries criticised the measures we would be prepared to associate ourselves with such disapproval.

L The Austrians have privately admitted that the whole law is incapable of straight-forward implementa- tion and has given rise to endless arguments with importers. We also understand, from the same Austrian source, that it is not the Austrians' intention to break her agreements under GATT or EFTA. (This infor- mation was passed to our Embassy, for use only with the utmost discretion.) At this time it was not anti-

cipated that Austria would sign the anti-dumping Code,

CONFIDENTIAL

/To everybody's