TNAG-0244-FCO40-280-Exports-of-textiles-from-Hong-Kong-to-USA-1970 — Page 100

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as the exporting countries had thought it would and should.

Furthermore the international structure of the m.m.f.

and

wool textile industry and trade was quite different from

that of the cotton sector in 1961.

51.

Mr. Stewart said that for most importing countries,

the L.T.A. only papered over the cracks whilst the cracks

became wider and wider. The U.K. Government was now

convinced that quota restraints wore the wrong path to

orderly trade and planned to revert to the tariff as the

regulator of imports.

52.

Mr. Nehmer reiterated his point that different

Governments

approached the problems facing their textile

industries in different ways. The U.S. Government did not

want to reduce imports; only to moderate the rate of growth.

This moderation would have to be achieved one way or another.

He suggested that the proposals which the U.S. Government

was now making were the best way of obtaining that moderation.

53.

Sir Eugene Melville said that it was essential to

relate the U.S. proposals to the possible effects they

might have on world trade. The C.T.A. had already made a

hole in the G.A.T.T. and further breaches could bring the

whole of the G.A.T.T. into disrepute.

There was no end

to the number of breaches which could be made and without

wishing to over-dramatise the situation, he felt that any

extension beyond cotton could have the most serious

/repercussions

.....

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