TNAG-0245-FCO40-281-Exports-of-textiles-from-Hong-Kong-to-Sweden-1970 — Page 132

their reactions were sufficiently positive for the idea to

be further pursued with the Japanese by the Foreign Secretary

in Tokyo and by officials who accompanied him, The Japanese

were sympathetic to the iles of a GATT discussion but said

that their relations with the US would not permit them to

give any public support to such a move, Informal discussions

of the proposal with Mr Long, Director General G.1", indicate

that he is unwilling to consider a GATE initiative except as

a last resort if the Americans are unable to reach bilateral

agreement. The position remains open and we shell be

discussing it further with the REC; it is unlikely that any

final decision will have been reached by the time of the

EFTA meeting.

EFTA POSITION

3. The Nordic countries at rate are unlikely to

favour any proposals for a GATT initiative designed to deter-

mine minimum criteria for proof of injury since the Norwegians

and Swedes at any rate have a number of restreint agreements

with: varioua low-cost suppliers, including Hong Kong, in mary

of which the case of injury is very weak.

WEDEN AND HONG KONG

After

In early 1968 Sweden asked, Hong Kong to restrain her

exports of a number of non-cotton textiles which the Swedes

alleged were causing injury to lomestic producers.

difficult and long-drewr-out discussions in which UK

Fartupated representatives as well as Hong Kong participation, it was

agreed that Hong Kong would restrain exports of three items

for twelve months from July 1968. In February 1969 these

restraints were extended to cover three more items and the

validity of the arrangement was continued up to 1 July 1970.

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