TNAG-0386-FCO40-432-Exports-of-non-cotton-textiles-from-Hong-Kong-to-the-EEC-1973 — Page 209

NOTHING TO BE WRITTEN IN THIS MARGIN

and

persevering ly

3.

only agree to voluntary restraints if a well-

documented, statistically sound case of damage

from particular products to the Community's

industry (or "regional" ie national sectors of it)

is convincingly presented.

Please let the appropriate authorities know on

19 January that this is the line we propose to take.

You should emphasise that we believe and intend this

line to help with the German textile problem. We have

sympathy with their desire for restraints on non-

thair

cottons of which imports have increased dramatically

and to an extent that we believe may well be damaging i

German industry although no supporting case has been

put forward.

4. We think that if either the Federal German

Government or the Commission approach Hong Kong and/or

the other Asian countries with a good case on specific

items they will (after inevitable argument) get what

they need. The near-comprehensive proposals of the

Commission on the other hand would:

(a)

be likely to be counter productive for this

particular purpose;

(b)

more fundamentally, establish an objectionab!

protectionist principle for the Community's

textile policy and for future worldwide

arrangements for trade in textiles.

5. Posts in other Community capitals please speak on

similar lines to appropriate authorities.

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