2.
2.
CONFIDENTIAL
Textiles: Problems and Possible Solutions
207,
The principal problems arising in the near future appear to be (a) What line should be taken with regard to the
(b)
Long Term Arrangement on cotton textiles, when the
question of prolonging it beyond autumn 1970 comes
up for consideration at meetings of the GATT
Cotton Textiles Committee in September and October
of this year?
What course is the United States likely to take in
pursuance of President Nixon's election commitment
to do something to restrain textile imports?
We
This paper is principally concerned with the second problem.
have still to work out our line for the autumn meetings of the GATT
Cotton Textiles Committee. As a working hypothesis for the following
paragraphs, it is assumed that the Long Term Arrangement will be
continued for some time more or less in its present form.
3. The alternative lines along which the United States might seek to
deal with the pressures for restraint of textile imports appear to be
the following:
(1) Domestic action only e.g. development assistance to
hard-pressed particular sectors of their industry. (ii) Extension of the Long Term Arrangement to non-cotton
textiles.
(iii) Quota restrictions imposed either in accordance with
the provisions of Article XIX of the GAFT, or in
disregard of the provisions of the GATT.
CONFIDENTIAL
/(iv) Raising
is