.2.
QUANTITATIVE RESTRICTIONS WOULD HAVE HAD A HARSHER EFFECT,
WOULD HAVE BEEN MORE ARBITRARY IN THEIR OPERATION AND WOULD
HAVE CAUSED MORE HARM TO OTHER COUNTRIES' TRADE.
4. ANY GEOGRAPHICAL EXEMPTIONS TO THE SCHEME WOULD HAVE
SERIOUSLY WEAKENED ITS EFFECTIVENESS IN RESTRAINING IMPORTS
AND WOULD HAVE INTRODUCED POSSIBILITIES OF EVASION. IT SEEMED
TO US THAT THIS MEASURE WHICH CIRCUMSTANCE HAS FORCED UPON US
WOULD GAIN GREATER GENERAL ACCEPTANCE IF IT WERE APPLIED IN
A NON-DISCRIMINATORY FASHION.
5. WE ARE NEVERTHELESS LIKELY TO BE CHALLENGED FOR INTRODUCING
A MEASURE WHICH IT MIGHT BE CLAIMED IS CONTRARY TO OUR INTER-
NATIONAL OBLIGATIONS.
(1) THE GATT PROHIBITS THE IMPOSITION OF ANY DUTY OR CHARGE
ON IMPORTED GOODS OVER AND ABOVE DUTIES THAT HAVE BEEN BOUND,
AS A RESULT OF INTERNATIONAL AGREEMENT. THE STOCKHGLM CONVENTION
AND THE ANGLO-IRISH FREE TRADE AGREEMENT REQUIRE DUTY FREE
ENTRY FOR THE GOODS TO WHICH THEY APPLY. IMPORT DEPOSITS,
AT ANY RATE TO THE EXTENT OF THE INTEREST COST, MAY BE ALLEGED
TO IMPOSE CHARGES UPON IMPORTS IN CONTRAVENTION OF THESE REQUIREMENTS
(11) A SIMILAR POINT ARISES IN RELATION TO DUTY-FREE REQUIREMENTS
IN OUR TRADE AGREEMENTS WITH AUSTRALIA, NEW ZEALAND, INDIA
AND SOUTH AFRICA.
(111) ALTHOUGH THE GATT AND THE FREE TRADE AGREEMENTS PERMIT
THE USE OF QUANTITATIVE RESTRICTIONS ON BALANCE OF PAYMENTS
GROUNDS THEY DO NOT SPECIFICALLY PERMIT IMPORT DEPOSITS.
(IV) IT COULD ALSO BE ARGUED THAT WE ARE IN BREACH OF ARTICLE 3
OF THE 1957 AGREEMENT BETWEEN THE UK AND GOVERNMENTS OF
MEMBER STATES OF ECSC CONCERNING COMMERCIAL RELATIONS WHICH PROVIDES
FOR ADVANCE CONSULTATION BEFORE QUOTE AN INCREASE IN CUSTOMS
DUTIES UNQUOTE ABOVE THE LEVEL ANNEXED TO THIS 1957 AGREEMENT
AND, IN THE EVENT OF FAILURE TO AGREE IN CONSULTATION, THIRTY
DAYS NOTICE OF INTRODUCING THE HIGHER RATES.
7. IN ALL THESE CASES YOU SHOULD IF QUESTIONED SAY THAT WE
FIND OURSELVES IN A POSITION WHERE, TO OUR REMAINING BALANCE OF PAYMENTS DIFFICULTIES, HAVE BEEN ADDED INTENSE STRAINS RESULTING
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