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U.S. Foreign Trade Policy
The guest speaker at today's EFTA Ambassadors lunch, given by the Danish Ambassador, was Mr. Donald Kendall, Chairman of the Emergency Committee for American Trade and President of Pepsi-Co. Inc.
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Mr. Kendall began by outlining the history of ECAT. The Committee would stay in being as an emergency committee whilst the threat of protectionism remained, but it was determined not to become a self-perpetuating body "existing for the benefit of its staff",
3. President Nixon, who was an old friend of Mr. Kendall's, was sincere in his dedication to freer world trade; indeed it was in deference to his advisers that in his public statements he referred to "freer" rather than to "free" trade. But the trading partners of the United States must follow the game principle. There was no quarrel with EFTA countries. The proposed E.E.C. tax on soya bean products was a serious threat, however, and it should be remembered that Arkansas (the State of Senator Fulbright and Congressman Mills) was an important producer. Japan in particular needed to change its policies. The door to Japanese imports into the United States was three miles wide, for U.3. importa into Japan it was only about one inch. The Pepsi-Cola Company had recently been refused permission to extend the range of its products in Japan.
Mr. Kendall did not protectionism in general.
see much prospect of success for Steel was taken care of and he hoped that something could be done about textiles. ECAT
If was against any extension of textile restraints. something had to be done, however, voluntary restraints were better than quotas. Mr. Nixon had given electoral promises; although the textile industry were doing well they were big employers of negro labour. Asian countries Mr. Kendall mentioned Japan and Hong Kong enjoyed much lower labour costs and in certain sectors, for example white shirts, wore toking a very high share of the U.S. market. Some countries (again Mr. Kendall mentioned Hong Kong by name) might have difficulty in enforcing voluntary export restraints; Japan could probably manage it. If voluntary restraints coulâ not be negotiated there was a risk that quota legislation would be extended in Congress to other products.
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Mr. Kendall's remarks were as usual followed by questions, most of which dwelt on the textile situation. They brought out that there was no difference in effect between volunary restraints and compulsory quotas, save that for the latter the United States would be expected to give
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