CYPHER/CAT A AND BY BAG
CONFIDENTIAL
IMMEDIATE FOREIGN AND COMMONWEALTH OFFICE
TELEGRAM NUMBER 310
TO BONN
7:
15 APRIL 1969
(KCC 13/3)
CONFIDENTIAL
NEUTRAL
ADDRESSED TO BONN TELEGRAM NUMBER 310 OF 15 APRIL AND TO UKMIS GENEVA, BERNE, ROME, PARIS, UKDEL EEC BRUSSELS, BRUSSELS AND THE HAGUE REPEATED FOR INFORMATION TO TOKYO AND WASHINGTON SAVING
TO HONG KONG,
MR STANS AND TEXTILES.
WE HAVE BEEN CONSIDERING THE LINE TO TAKE WITH MR STANS, IF, AS WE EXPECT, HE PROPOSES THE EXTENSION TO ALL TEXTILES OF THE GATT COTTON TEXTILES ARRANGEMENT. THE POINTS WHICH STANS IS LIKELY TO MAKE HAVE BEEN INDICATED IN WASHINGTON TELEGRAM 1889, 1129 AND 1130. HE WILL NO DOUBT EMPHASISE, AS WELL AS MR. NIXON'S ELECTION PROMISES, GROWING INTERCHANGE ABILITY OF DIFFERENT TEXTILE FIBRES, AND THE PROBLEM OF PARTICULAR SECTORS OF THE U.S. TEXTILE INDUSTRY. 2. ALTHOUGH A PROPOSAL FOR EXTENSION OF THE CTA MIGHT BE AT FIRST SIGHT ATTRACTIVE TO SOME U.K. TEXTILE INTERESTS, PARTICULARLY IF BACKED BY A U.S. UNDERTAKING NOT REPEAT NOT TO APPLY IT TO IMPORTS FROM THE U.K., CUR VIEW IS THAT THE U.K. WOULD HAVE LITTLE TO GAIN AND WOULD PROBABLY HAVE MUCH TO LOSE FROM SUCH A PROPOSAL. AMONG OTHER THINGS, IT IS NOT REPEAT NOT CLEAR WHAT BINDING COMMITMENT THE U.S. COULD GIVE NOT REPEAT NOT TO INVOKE AN EXTENDED CTA AGAINST U.K. EXPORTS, AND IT IS DOUBTFUL WHETHER EVEN IF SUCH A COMMITMENT WERE GIVEN U.K. EXPORTS WOULD GAIN IN THE U.S. MARKETS FROM RESTRICTIONS ON IMPORTS FROM DEVELOPING COUNTRIES AND JAPAN. THE MAIN BENEFICIARY WOULD BE THE DOMESTIC INDUSTRY IN THE U.S.A. 3. APART FROM THESE PROBLEMS, A PROPOSAL TO EXTEND THE CTA WOULD FACE GREAT DIFFICULTY IN GATT, PARTICULARLY FROM THE DEVELOPING COUNTRIES WHO FORM A GATT MAJORITY.
4. WE UNDERSTAND THAT THE E.E.C. COMMISSION HAVE TAKEN A FAIRLY STIFF LINE WITH MR. STANS, TO THE EFFECT THAT THEY WOULD NEED TO
CONFIDENTIAL
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