TNAG-0341-FCO40-377-Effects-on-Hong-Kong-of-long-term-policy-for-textiles-in-int-1972 — Page 129

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Sir Frederick Mason

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31

19 May 1972

No 42 Saving

- 1 JUN 1972

CONFIDENTIAL

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CONFIDENTIAL [NEUTRAL]

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Addressed to FCO telegram No 42 Saving of 19 May 1972. we Repeated for information Saving to Tashington, Tokyo

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The informal group (US, EEC, Japan, UK) met on 17 under Long's chairmanship. Hijzen (with ten others) represented the Community, Jurich the United States, Kitahara and Sato Japan and Ridley the UK. The meeting The meeting f. Agreement was less difficult than expectel. was reached fairly quickly on proceeding with the work in three stages, viz fact-finding; analysis of the problems; and consideration of whether further work should take place with a view to solutions being sought. It was provisionally agreed. that a Working Party should be estab- lished, and that it should report to the GATT Council by

The Council the end of the year on the first two stages. would then decide whether to proceed with stage three, which might develop into an eventual negotiation.

It was

2. There was a less easy discussion on the precise terms of reference of the proposed "orking Farty. agreed that they should be brief and general, but the Japanese were anxious that they should not give the impression that there would necessarily be any study of solutions and the Americans, for domestic presentational reasons, wanted the impression conveyed of rapid study

The leading to early action to solve textile problems. Americans also tried in vain to insert a reference to the desirability of "orderly expansion of world trade in textiles" and may (unwisely) revert to this at a later

The difficulties on both sides stage unless dissuaded. were, however, largely presentational and eventually it was agreed that the terms of reference in mift should be used by Long in the next steps set out below (though none of the four participants was formally committed to them). 3. Long will be hosting a larger informal meeting of interested countries (including developing countries) at 10 ar on Tue.lay 23 May. He is anxious that no knowledge should leak cut of the prior 4-Power meeting and will treat the meeting next week as a first exchange, but he will seek to float at that meeting the ideas set out above.

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