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conform to G.A.T.T. criteria in that they do not discriminate between countries outside the agreement. They have
encouraged our own attempts to enter the E.E.C. As in this country, there are some advocates of a North Atlantic Free Trade Area but there are no strong moves in the U.S. in favour of such an association, particularly while the U.K. has hopes of joining the E.E.C. There have been some indications that if the U.S.A. finally gave up these hopes proposals for a North Atlantic Free Trade Area might be favoured as an alternative.
Postscript to paragraphs 7 and 9
13. There is a danger perhaps that the Americans may argue that if we can meet them over restraint on exports of textiles, they in turn will undertake to abolish A.S.P. Apart from the fact that protection for an industry which includes the chemical giants like Du Pont (which recorded an average increase of at least 25% in profits last year) would belie and undermine the objectives of freer world trade which the President has espoused, the two issues are quite distinct, America has pledged herself internationally (in the Kennedy Round) to abolish A.S.P., in return for valuable concessions from other nations, so there can be no question of this being paid for twice over.
Board of Trade
18th February 1969
7
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