5.
This arrangement is technically on a "voluntary"
basis and was thus entered into without reference to the GATT.
The strength of the Swedish case of injury to fomestic
producers varied from one item to anothor, but at any rate
their case was thoroughly probed and roquest for restraint
on additional items on which the case was still weaker were
successfully opposed.
6. The Swedes have recently asked "ong Kong both to
continue all the existing restraints for a further twelve
months and to add a further five items to the list; on some
of these the evidence of injury is weak to the point of
Discussions of these requests were held
recently in Hong Kong with a representative of HMG (from the
Ministry of Technology) present but no agreement could be
reached. The Swedes were apparently determined to insist
non-existence.
on their full list of requests for largely domestic political
ressors. The discussions are to be continued in Stockholm
at the end of May.
UK LINEA
7. (a) In view of the many uncertainties surrounding
the likelihood of US action with the Asian suppliers and the
attitude of the Japan; and the Director General to a GATT
initiative, and in view of the Nordic countries' own attitude,
it is not suggested that UK Ministers should make ary definite
suggestions or should raise the proposal of a GATT initiative.
theing It is suggested however that we' should express our general
concern at the American moves and hope that we can rely on
EFTA support in any action to attempt to oppose any American
action likely to result in comprehensive restraint on non-cottor
3
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