CONFIDENTIAL
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SEE A LOT MORE FACTS AND A BETTER SUPPORTED CASE BEFORE THEY COULD
TAKE A POSITION, AND THAT THEY ARE RECOMMENDING THAT MEMBER COUNTRIES SHOULD FOLLOW SUIT. WE HAVE SEEN WASHINGTON TELEGRAM 1168 OF 14 APRIL (NOT TO ALL) SAYING THAT THERE IS REASON TO SUPPOSE THAT STANS HAS BEEN IMPRESSED BY THE NEGATIVE RESPONSE HE HAS MET 'IN HIS TALKS SO FAR.
5. OUR GENERAL LINE WILL BE TO MAKE IT CLEAR TO STANS THAT ON THE BASIS OF THE EVIDENCE WE HAVE SEEN WE DO NOT REPEAT NOT FEEL THAT THERE IS ANY DOMESTIC JUSTIFICATION FOR RESTRAINTS ON NON-COTTON TEXTILE IMPORTS BY THE U.S., AND TO EMPHASISE THE INTERNATIONAL OPPOSITION AND GATT DIFFICULTIES WHICH ANY SUCH PROPOSALS ARE LIKELY TO MEET. IF STANS SUGGESTS A GATT CONFERENCE, WE SHALL TAKE THE LINE THAT WE DO NOT SEE AT PRESENT WHAT THERE WOULD BE FOR SUCH A CONFERENCE TO DISCUSS. WHILE WE DO NOT WISH AT THIS STAGE TO LOSE U.S. GOODWILL BY OUTRIGHT REFUSAL TO CONSIDER ANY PROPOSALS, AND WE CERTAINLY DO NOT WISH TO GET IN ADVANCE OF THE E.E.C. POSITION WE SHALL PROBABLY BE PREPARED TO INDICATE IF IT SEEMS NECESSARY AND EXPEDIENT TO DO SO, THAT IN THE LAST RESORT WE SHOULD EXPECT TO RANGE OURSELVES ON THE SIDE OF THE OPPOSITION. WE SHALL SUGGEST THAT THE SOLUTION TO ANY LOCAL PROBLEMS IN THE U.S. SHOULD BE BY LOCAL DOMESTIC ASSISTANCE.
6. YOU MAY DRAW ON THE ABOVE IN DISCUSSING THE U.K. LINE WITH THE AUTHORITIES IN YOUR COUNTRY. YOU SHOULD REPORT BY TELEGRAM ANYTHING YOU CAN LEARN OF THE ATTITUDE TO BE TAKEN BY THE GOVERNMENT. TO WHICH YOU ARE ACCREDITED AND OF THE COURSE OF THEIR TALKS WITH
STANS.
STEWART
INTERNATIONAL TRADE DISTRIBUTION
COMMODITIES DEPT
TRADE POLICY DEPT
CONFIDENTIAL
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