TNAG-0244-FCO40-280-Exports-of-textiles-from-Hong-Kong-to-USA-1970 — Page 127

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G.T. 323

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The concept of a comprehensive agreement presupposed restraint in cases where no injury nor even threat of injury existed. This would be directly opposed to GATT principles. The fact that many "Article 4" cotton bilaterals were comprehensive was no precedent since in those cases there was a multilateral arrangement which provided the basic framework.

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Nehmer further argued that it might be less injurious in the long run for international trade relations if comprehensive arrangements were made ab initio than if successful annual exten- sions with new categories added had to be discussed and agreed. He ended with the familiar reference to the fact that, once Congress took the bit between its teeth, the administration might not be able to halt the situation or even confine it to textiles. We said that we also had a political problem and stressed the common danger of unilateral action contrary to GATT.

CONFIDENTIAL