TNAG-0244-FCO40-280-Exports-of-textiles-from-Hong-Kong-to-USA-1970 — Page 52

and means for the solution of this issue are as follows.

(1)

The Government of Japan can implement export restraints

only on a selective basis, solely for those items which are subject

to serious injury or threat of serious injury caused by increased

imports, and only upon obtaining the understanding of the

domestic industries concerned in Japan and following the consent

of the major exporting countries.

(2) However, the normal manner to deal with this problem

would be resort to Article 19 of the GATT by the United States.

As stated in paragraph 2. (3), in case the measures referred to

in (1) above should be put into effect, they are to be considered

interim measures to be employed until the United States will

be in a position to resort to that Article. The Government of

Japan reserves its rights under the GATT in case the United

States resorts to Article 19

(3) The Government of Japan can understand the United

States position that, under Article 19 of the GATT, judgements as

to the existence of injury is made, in the first instance, by

the importing country.

holding of sufficient consultations with exporting countries

However, Article 19 provides for the

concerning compensation and other matters. It is also noted that,

in the United States, the existence of serious injury or the threat