Kr Ridley CT Division
Room 2018
Illbank Tower
796
14. Jay
сс
Hembers of the Textile Working Party
acco
I am not altogether happy with the draft submission on Thailand, and Columbia. I realise you do not want a South Korean situation all over again, and that the surveillance system was set up to give your warning. But I agree with Miss Elliott that if the imports are not low priced we are surely not justified, in terms of lir Chataway's letter, in restricting them. To do so would be to concede that we must restrict imports which are not low priced in order to hearten. domestic industry and encourage their investment plans. We surely do not want the now Agreement to permit this? And any rejoinder the these supplies are potentially low priced brings us very near to the French argument that some suppliers have to be restricted because they are who they are.
2. In these circumstances if one "did nothing" this would involve the risk, at the next down-turn of the cycle, of larger imports at low prices from these countries which under the rules cannot be "cut back". One could, conceivably, bring the dilemma out more clearly in the submission io that we are restriding imports that are not prima facie disruptive and give Ministers the choice of not restriding them. But what you seem to have in mind, would perhaps satisfy us in practice - ie that having set the "performance" we undertake to overlicence while demand is high. By overlicencing I I. mean, and I think you do too, not merely honouring existing contracts but letting the stuff in without limitation until a "genuine threat" materialises. If so, perhaps the conclusions could be amended accordingly.
MP DAM CRE 1
Room 448
Ext 2455
1 Victoria Street
8 August 1973
No comments yet.
Private notes are available after approval.