CONFIDENTIAL
6.
Mr. Hori asked whether we knew what the attitude of Western European governments would be to a U.S. proposal for a conference. We said that we had no up-to-date information but previous indications were that their thinking was broadly in line with our own. The visitors referred to reports that Italy was the country most likely to be vulnerable to U.S. pressures.
7. Mr. Hori also referred to allegations that had been made that Japan was likely to be the weakest link. This was not so. In their experience of the Long Term Arrangement for cotton textiles, it was Japan who had lost most in its market share "in the U.S.A. and so on". The LTA was very unpopular in Japan. Japan was likely to be one of the strongest opponents of its extension to other textiles.
7. kir. Hori suggested that the U.S. Tariff Commission Report showed that there was no justification for restrictions on textile imports. Mr. Whitehead said that his recollection was that the report indicated that, although the industry as a whole was healthy, there were areas of difficulty; but if this was the case he assumed that domestic measures might be the answer.
FOREIGN & COMMONWEALTH OFFICE.
2 April. 1969.
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CONFIDENTIAL