TNAG-0239-FCO40-275-Entitlement-of-Hong-Kong-to-generalised-tariffs-preferences--1970 — Page 198

RESTRICTED

2

5. JONES SAID HE FELT WE WOULD PREFER THAT THE SITUATION SHOULD BE UNDER THE CONTROL OF GOVERNMENT REPRESENTATIVES ACTING UNDER

INSTRUCTIONS. HE DID NOT THINK THAT AN EXPERT GROUP IN THIS FIELD

WOULD HAVE MUCH TO CONTRIBUTE AT THE PRESENT STAGE AND IT MIGHT BE

DIFFICULT TO KEEP IT UNDER CONTROL. BUT HE WOULD REPORT BACK. HE ADDED THAT IT WOULD BE A MISTAKE TO THINK THAT, EVEN IF THE U.S. TRADE BILL FAILED TO PASS THIS TIME, THE TEXTILES PROBLEM WOULD DISAPPEAR. THE HONG KONG VIEW WAS THAT, IF IT PROVED IN THE END IMPOSSIBLE TO AVOID RESTRICTIVE ACTION, AN EXTENSION OF THE LTA

TO OTHER TEXTILES WAS NOT THE WORST SOLUTION. IT WAS SUPERIOR TO

IMPORT RESTRICTIONS, WIDE RANGING BILATERAL EXPORT RESTRAINTS

OUTSIDE INTERNATIONAL RULES OR A SEPARATE ARRANGEMENT ON NON COTTON

TEXTILES. FOR ONE REASON OR ANOTHER THE CORE OF THE LTA HAD BEEN

LITTLE USED WITH JAPAN BUT IT HAD PERMITTED AN ORDERLY EXPANSION OF TRADE OF OTHER EXPORTING COUNTRIES. KARUDA AGREED THAT THE

OPPOSITION OF THE JAPANESE INDUSTRY TO THE LTA WAS PROBABLY MORE

EMOTIONAL THAN RATIONAL.

6

AS REGARDS THE NEXT INFORMAL FOUR POWER MEETING IN THE GATT

KARUDA SAID JAPANESE WERE NOT OPPOSED TO A FURTHER EARLY MEETING.

THEY CONSIDERED THAT THESE MEETINGS COULD WELL DEVELOP INTO AN

INFORMAL INNER STEERING GROUP IN THE GATT WHERE, WITH PROLIFERATION OF DEVELOPING AND EASTERN EUROPEAN COUNTRIES, IT WAS BECOMING MORE DIFFICULT TO GET MEANINGFUL BUSINESS TRANSACTED.

ད་་

7. THERE WAS ALSO SOME DISCUSSION ON PREFERENCES ON WHICH PLEASE SEE M.1.F.T.

FCO PLEASE PASS COPIES TO HUGHES AND DUNNETT, BOARD OF TRADE, AND TO CAREY, MINISTRY OF TECHNOLOGY.

FCO PLEASE PASS UKMIS GENEVA HONG KONG TOKYO WASHINGTON

AND UKDEL EEC BRUSSELS [ADVANCED. TO BOARD OF TRADE AND MATECH.]

REPEATED AS REQUESTED]

ADDITIONAL DISTRIBUTION: H.K. INT TRADE.

SIR J. CHADWICK.

INTERNATIONAL TRADE DISTRIBUTION

T.P.D.

W.E.D.

H.K.D.

AMER.D.

F.E.D.

RESTRICTED