TNAG-1393-FCO40-1865-Future-of-Hong-Kong-briefing-for-meetings-and-visits-1985 — Page 54

This was why the United Kingdom, along with Gargany, Japan, responded positively

the initiative taken

he five

by the Governor for the United States, Secretary Baker. countries together committed themselves at their zeeting

La reinforce

22 September

32

are already bringing about steady growth and declining inflation. to resist the forces of protectionism, and to take such action as might be necessary to secure an early adjustment in the exchange rate between the dollar and other major currencies.

But resisting new protectionist pressures, although of the fire importance, is not enough. We urgently need pore progress in rolling back longestablished barriers

barriers and in

in extending the scope of the open trading system. The best guarantee we have against the erosion of free trade is to make further progress in the

multilateral

context of the GATT. This is in the interests of

all of us • developing and industrial countries alike. We should

all be concerned about the way non-tariff barriers and othET discriminatory practices have grown up, precisely when multilateral action in successive GATT rounds has reduced formal tariff barriers.

Such measures are as harmful to the developing countries

the industrialised world.

We all have much

much to gain from freer trade just as we all kame something to contribute. For this reason

reason the UK strongly supports the proposed new round of trade negotiations. A good start made at the special GATT meeting last week. When the Contracting. Parties meet in November and in the negotiations which I hopa

vill follow, my Government will support the broadest possible. agenda.

We need also

also to

to look behind the present imbalances of trade which

have given rise to protectionist presures, to get at and-to

eliminate the root causes. If I refer in particular to Us --and Japan it is because their major influence in the world

Means that their policies cannot be judged solely by domast

criteria.

As in other industrialised countries, United States noustary policy

aust be aimed at avoiding a resurgence of inflation.