TNAG-0300-FCO40-336-Entitlement-of-Hong-Kong-to-generalized-tariffs-preferences--1971 — Page 50

FCO40 Hong Kong Department Records 聯邦事務部香港部檔案 All

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tariff or quota action we pleased. But such action would have to apply to all countries (which would raise EFTA difficulties) and be paid for either by tariff concessions in the UK or by acquiescing in retaliation against UK exports.

Non-Cotton Textiles

At the present time we could act unilaterally only by invoking Article 19 of the GATT.

Alternatively, we could seek international agreement (which might not be impossible) to extend the Cotton LTA to man-made fibres' or on some other safeguard arrangements which allowed (like the LTA) discriminatory action against countries causing disruption.

Or we might seek to join with the EEC, who face a similar threat of diversion because of American actions and whom we are anyway consulting, in trying to negotiate restraint arrangements with the Asian countrie) concerned. It ia again very likely that no cut-backs could be achieved under either of these options.

17 All the options raise real difficulties and their

effectiveness is uncertain. We shall submit our recommendation:

as soon as possible.

WHAT ELSE COULD BE DONE?

18 Short of drastic steps, in breach of our international

obligations, immediately to reduce imports, which in my view

is in no way justified by the situation, any practicable action

on the import front can havo no bearing on the immediate

problem in Lancashire.

caused by unemployment;

I see this primarily as the distreso the closure of mills as such remains

a healthy sign that the industry is getting down to its weight.

11

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