TNAG-0163-FCO40-199-Export-of-textiles-to-Norway-and-Sweden-1969 — Page 94

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3. WHILE WE ARE CONSCIOUS OF THE UNDESIRABILITY OF EXTENDING

EXPORT RESTRAINTS, I THINK WE MUST RECOGNISE THAT IF THE SWEDES

HAVE A CASE, IF WE REFUSE TO CONSIDER IT, AND IF THEY THEN

TAKE ARTICLE XIX ACTION PRESENTED AS NON-DISCRIMINATORY AGAINST

HONG KONG, WE SHOULD GET LITTLE SYMPATHY IN THE GATT., 1.E.

THE SWEDES WOULD PROBABLY GET AWAY WITH IT, AND THEY ARE UNDOUBTEDLY

AWARE OF THIS.

4.

I DO NOT BELIEVE THAT AN EXTENSION OF THESE RESTRAINTS

WOULD HAVE MUCH EFFECT ON AMERICAN POLICY, INDEED WASHINGTON

TELEGRAM 868 AND PRESS REPORTS OF RECENT SPEECHES BY MR STANS

INDICATE THAT THE AMERICAN GOVERNMENT HAS ALREADY DECIDED TO

SEEK RESTRAINTS ON M.M.F. AND WOOL ON C.T.A. LINES. IT SEEMS

TO ME THAT AN INSTRANSIGENT ATTITUDE BY ANY LOW-COST PRODUCER'

AGAINST WHICH AN IMPORTING COUNTRY COULD PRESENT A PRIMA FACIE SERIOUS INJURY CASE WOULD, AT THIS STAGE, STRENGTHEN THE HANDS

OF THOSE WHO SEEK AN INTERNATIONAL M.M.F. AGREEMENT ON THE LINES

OF THE C.T.A.

5.

YOU WILL APPRECIATE THAT SINCE THE AGREEMENT ON COTTON

GARMENTS EXPIRES AT THE END OF MAY, AND ON THE NON COTTON ITEMS AT THE END OF JUNE, IT IS IMPORTANT THAT, A CONCLUSION BE REACHED

AT THE TALKS IN APRIL SO THAT:

(A) THE TRADE MAY PLAN ACCORDINGLY SEMICOLON AND

(B) WE MAY AVOID BEING COMMITTED TO NEGOTIATIONS LATER IN THE YEAR WHEN OUR NEGOTIATING COMMITMENTS ARE ALREADY CONSIDERABLE. (F C O PLS PASS TO ALL)

SIR D. TRENCH

[REPFATED AS REQUESTED]

[COPIES SENT TO HONG KONG GOVERMENT OFFICE LONDON

BY COMIS DEPT A.D.R.]

INTERNATIONAL TRADE DISTRIBUTION

H.K.D.

TR. POL. DEPT.

COMMODITIES DEPT.

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