CAT A CYPHER
PRIORITY WASHINGTON
TELEGRAM NUMBER 882
CONFIDENTIALL
2644
''NEUTRAL''
CONFIDENTIAL
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Mair 26/3
TO FOREIGN/COMMONWEALTH OFFICE
24 MARCH 1969
45
ADDSD FCO TELNO 882 OF 24 MARCH RPTD FOR INFMN TOKYO HONG KONG
SAVING BRUSSELS UKDEL EEC BRUSSELS, THE HAGUE BONN UKMIS GENEVA BERNE ROME AND PARIS.
MYTELNO 8681 US SECRETARY OF COMMERCE'S EUROPEAN TOUR AND
TEXTILE RESTRAINTS.
IT IS GETTING INCREASINGLY CLEAR FROM HIS ADDRESS TO THE AMERICAN TEXTILE MANUFACTURER'S INSTITUTE ON 22 MARCH AND FROM SUB SEQUENT PRESS REPORTS THAT MR STANS WILL PROPOSE THE CONVENING OF A FORMAL GATT CONFERENCE, PROBABLY IN MAY, TO NEGOTIATE THE EXTENTION OF THE LONG TERM ARRANGEMENT ON COTTON TEXTILES TO WOOL
AND MAN-MADE FIBRES. THIS PROPOSAL MAY CONFRONT EXPORTING COUNTRIES
WITH AN AWKWARD DECISION BETWEEN:
(A) REFUSING TO ATTEND A CONFERENCE, THIS WOULD FORCE THE ADMINISTRATION TO MAKE AN EARLY CHOICE EITHER TO ABANDON THEIR
EFFORTS TO FULFIL THE PRESIDENT'S COMMITMENT TO THE TEXTILE INDUSTRY
OR TO ACQUIESCE IN LEGISLATED QUOTAS: OR
(B) AGREEING IN PRINCIPLE TO ATTEND A CONFERENCE.
THIS ON THE ONE
HAND MIGHT ENABLE AMERICAN NEGOTIATORS TO BREAK UP THE FRONT
OF EXPORTING COUNTRIES BY PERSUADING SOME OF THE WAVERERS THAT THE OTHERS ARE NOT UNITED IN OPPOSING TEXTILE RESTRAINTS. ON THE OTHER HAND IT MIGHT ENNABLE US TO TALK THE WHOLE ISSUE INTO THE SAND. 2. WE DISCUSSED THIS QUESTION TODAY WITH DANIELS WHO HAS
JUST RETURNED FROM HIS VISIT TO EUROPE. HE CONSIDERS THAT THE DANGERS INHERENT IN THE SECOND ALTERNATIVE GREATLY OUTWEIGH THOSE OF THE
FIRST. HIS VIEW IS THAT IF MR STANS ENCOUNTERS A FIRM
CONFIDENTIAL
/REFUSAL
LAST
I
f
X 48 0191
RECEIVE ARCHIVES A
26 MAK 1920
HKK 6/304/1
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