3
1
H.H. Stewart, Esq.
17th October, 1969.
more lucrative U.S. market. He concluded by expanding on his earlier remarks and explaining that by doing well, he had meant no more than that India and Pakistan were likely to be more seriously hurt by the tariff than Hong Kong.
It is rather important to set the record straight here because what David said has since been quoted as indicating that Hong Kong was not really bothered about the tariff recommendation, when what David said amounts in fact to no more than that Hong Kong might increase its share of the market if allowed to (i.e. there are no new quotas) and if EFTA were not allowed unlimited duty-free entry.
This issue was of course being discussed in the climate engendered by the evidence of 1st April. We had been led to expect consultation before not after decision, and while we could envisage discrimination in favour of the Commonwealth being removed, frankly some of us found it difficult to take the Textile Council's recommendation seriously since it would involve new discrimination against the Commonwealth and particularly against the less-developed members of it. David tells me that in the C.T.C. last week the Indians made it clear that (because of the condition of their industry, though of course they did not say so) they want quotas to remain while tariff preferences are granted, so that they can get a guaranteed share of the market regardless of competitive ability, and make a bit more foreign exchange out of it.
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(D.M. Sellers)
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