JONE, DENTAL
DSR 1C
1.
Diplomatic relations were reduced to Chargé d'Affaires
level and there was a modest subsequent reduction in Dutch
exports to China. However, relations appear to have suffered
less, in practice, than originally expected. It is probable
that the Chinese were using the Dutch to give a strong signal
to the US, warning against arms sales to Taiwan.
Indonesia-Benelux
5. Soon after the start of Britain's dispute with Indonesia
over textiles, the Benelux countries found that Indonesia
was exceeding the trigger level for certain textile imports.
Against the urging of the EC Commission which expressed
concern about the precedent being set, they rapidly conceded
more generous quota levels. The threat of discrimination
was implicit: it existed primarily in the precedent that
Indonesia had established with the UK. But fear of
discrimination was an important factor in these countries'
decision to settle so quickly and generously.
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