TNAG-0762-FCO40-966-Effect-of-GATT-Multi-Fibre-Arrangement-(MFA)-on-Hong-Kong-ex-1978 — Page 85

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a group which has particularly been looking at developing countries

and in which these countries have been keen to concentrate the

discussion in order to try to ensure that special and differential

treatment is included. A number of proposals have been put forward

the latest being detailed US proposals for a quasi-judicial approach

with detailed procedural arrangements based on the existing GATT Articles.

As a counterbalance to these proposals the Commission is preparing a

further paper advocating the use of traditional GATT conciliatory

methods and a flexible operating basis rather than a juridical approach

to dispute settlement procedures. It is hoped that further progress will

be made following further bilateral discussions.

T SHARP

CRE1

12 May 1978

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