TNAG-0244-FCO40-280-Exports-of-textiles-from-Hong-Kong-to-USA-1970 — Page 171

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CONFIDENTIAL

CYPHER/ CAT A.

IMMEDIATE

HONG KONG,

TO FOREIGN AND COMMONWEALTH OFFICE

TELEGRAM NUMBER 129

25 FEBRUARY 1970

20 283

CONFIDENTIAL

26

ADDRESSED F C O TELNO 129 OF 25 FEBRUARY REPTD FOR INFMN TO

WASHINGTON AND GENEVA.

RECEIVE

REGISTRY.

send to 0.01 as

CREDA U/H 24/2/10

MY TELEGRAM 123: NON-COTTON TEXTILES.

HKX6/04/1

I MUST EXPRESS MY CONCERN OVER THE POSSIBLE IMPLICATIONS

BEHIND THE RECENT EXCHANGE OF CREDA TELEGRAMS WITH WASHINGTON,

THESE PROPOSE A REVIVAL OF THE ARTICLE XIX APPROACH WHICH CAN

HAVE MOST SERIOUS CONSEQUENCES FOR HONG KONG (SEE JORDAN'S

LETTER TO WILFORD OF 20 SEPTEMBER 1969).

2. I WOULD THEREFORE REITERATE MOST STRONGLY MY OPPOSITION TO

PROPOSALS ON THESE LINES. IN THIS CONNECTION I WOULD ALSO

POINT CUT THAT IN 1960 THE CONTRACTING PARTIES TO THE GATT

CONSIDERED ARTICLE XIX DID NOT HOLD THE SOLUTION TO THE PROBLEM

OF LOW-COST IMPORTS OF COTTON TEXTILES.

THE GATT WORKING PARTY ON MARKET DISRUPTION REACHED A SIMILAR

CONCLUSION AT LEAST BY IMPLICATION, ANY REVIVAL OF THIS ARTICLE

XIX APPROACH MIGHT THEREFORE BE EXPECTED TO LEAD TO A MORE

RESTRICTIVE ARRANGEMENT WITH GREATLY WEAKENED CRITERIA FOR

DETERMINATION OF SERIOUS INJURY, OR TO THE GENERAL ABANDONMENT

OF THE NEED FOR THE NON-DISCRIMINATORY APPLICATION OF ARTICLE

XIX WHEN IT IS INVOKED. IN EITHER EVENTUALITY THE CONSEQUENCES

FOR HONG KONG'S TRADE (AND NOT ONLY IN THE FIELD OF TEXTILES

OR CONFINED TO U.S. MARKETS), AND ALL THE OTHER REPERCUSSIONS IT

WOULD BRING IN ITS TRAIN, WOULD BE INCALCULABLE.

CONFIDENTIAL

13.