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C RESTRICTIONS SHOULD BE OF LIMITED DURATION AND HAVE A SPECIFIC PURPOSE, RELATED TO A PARTICULAR SECTOR OF INDUSTRY, EG CREATION OF STABLE CONDITIONS FOR CAPITAL INVESTMENT AND INCREASE OF PRODUCTION TO ECONOMIC LEVELS, OR ANIMISATION OF UNEMPLOYMENT AND COMMERCIAL LOSSES DURING RUN-DOWN.
PRODUCT COVERAGE SHOULD BE SELECTIVE AND CONFINED TO AREAS IN WHICH SUBSTANTIAL AND INCREASING IMPORTS ARE CAUSING OR IMMEDIATELY THREATENING TO CAUSE REAL DAMAGE TO COMMUNITY INDUSTRY, EG LOSS OF JOBS, FALLING MARKET SHARE, CANCELLATION OF INVESTMENT PLANS.
E RESTRICTIONS SHOULD COVER SUBSTITUTABLE PRODUCTS ON A
MULTI-FIBRE BASIS.
(F) BASED ON THE ABOVE AND ON OUR LONG EXPERIENCE OF HONG KONG INCLUDING RECENT SUCCESSFUL NEGOTIATIONS ON WOVEN POLYESTER COTTON FABRICS AND MADE-UP GOODS, WE BELIEVE THAT HONG KONG WILL AND SHOULD ONLY AGREE TO VOLUNTARY RESTRAINTS IF A WELL-DOCUMENTED, STATISTICALLY SOUND CASE OF DAMAGE FROM PARTICULAR PRODUCTS TO THE COMMUNITY'S INDUSTRY (OR QUOTE REGIONAL UNQUOTE IE NATIONAL SECTORS OF IT) IS CONVINCINGLY AND PERSEVERINGLY PRESENTED.
3. 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-COTTONS OF WHICH THEIR IMPORTS HAVE INCREASED DRAMATICALLY AND TO AN EXTENT THAT WE BELIEVE MAY WELL BE DAMAGING TO GERMAN INDUSTRY ALTHOUGH NO SUPPORTING CASE HAS BEEN PUT FORWARD,
4. HE 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)
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