TNAG-0341-FCO40-377-Effects-on-Hong-Kong-of-long-term-policy-for-textiles-in-int-1972 — Page 79

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CYPHER/CAT A

FM UKMIS GENEVA 191445Z

YN 51

21 JUN 1972

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NEUTRAL

LAST

Luxk 6/8

(29)

NEXT

ACF.

34

TO ROUTINE FCO TEL NO 269 OF 19 JUNE 1972 INFO HONG KONG, WASHINGTON, UKDEL EEC AND TOKYO.

STUDY.

MY TELEGRAM NO 248: GATT TEXTILE STUDY.

1.

LONG'S INFORMAL MEETING WAS HELD THIS MORNING. PRECEDING

DISCUSSIONS HAD IRONED OUT DIFFICULTIES BETWEEN THE JAPANESE

AND THE UNITED STATES AND THE FORMER ANNOUNCED THAT THEIR

PRESENTATIONAL DIFFICULTIES WOULD BE MET IF THE OPERATIVE PART OF THE TERMS OF REFERENCE IN CV/202 SPOKE OF QUOTE A STUDY OF FACT

UNQUOTE INSTEAD OF QUOTE A FACTUAL STUDY UNQUOTE. THE JAPANESE

AND AMERICANS WERE ALSO IN AGREEMENT ON MINOR AMENDMENTS TO THE

SECOND OPERATIVE CLAUSE TO MAKE IT READ QUOTE THE WORKING PARTY

SHALL PRESENT ITS REPORT FOR CONSIDERATION BY THE COUNCIL BY

THE END OF 1972 UNQUOTE.

6.

3.

A CONSENSUS RAPIDLY EMERGED FAVOURING THESE CHANGES.

INDIA, SUPPORTED BY GREECE, EGYPT, PAKISTAN, BRAZIL, SPAIN, TURKEY AND ARGENTINA, PRESSED FOR A PREAMBULAR PARAGRAPH (EITHER

ADDITIONAL TO CR TO BE COMBINED WITH THE SECOND EXISTING PREAMBULAR

PARAGRAPH) WHICH WOULD SINGLE CUT THE PARTICULAR IMPORTANCE OF

TRADE IN COTTON PRODUCTS FOR THE ECONOMIC AND SOCIAL DEVELOPMENT

OF DEVELOPING COUNTRIES AND FOR PROVIDING THEM WITH LARGER

OPPORTUNITIES FOR INCREASING THEIR EXCHANGE EARNINGS FROM SUCH

TRADE. THIS WAS DEPRECATED BY NEARLY ALL DEVELOPED COUNTRIES AS

PREJUDICING THE PURELY FACTUAL NATURE OF THE STUDY AND BECAUSE IT

WAS UNREALISTIC IN CURRENT CONDITIONS IN TRADE IN TEXTILES TO

TRY TO PRESERVE CLEAR DISTINCTIONS BETWEEN FIBRES. PEARSON (UK, FOR H NG KONG), POINTED OUT THAT FOR SUME DEVELOPING COUNTRIES

AND TERRITORIES IT WOULD BE INAPPROPRIATE TO PLACE TOO MUCH

STRESS ON COTTONS AS AGAINST OTHER FIBRES.

/4.

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