".

CYPHER/CAT A.

PRIORITY WASHINGTON

TELEGRAM NO 1412

CONFIDENTIAL

TO FOREIGN AND COMMONWEALTH OFFICE

8 MAY 1969.

139

CONFIDENTIAL.

NEUTRAL.

ADDSD TO FCO TELNO 1412 OF 8 MAY REPTD FOR INFMN HONG KONG TOKYO SECUL TAIPEI UKMIS GENEVA UKDEL EEC BRUSSELS AND SAVING

TO BRUSSELS THE HAGUE BONN BERNE PARIS ROME.

MY TELEGRAM NO 954 (NOT TO ALL): U.S. TEXTILE IMPORTS

MR STANS' VISIT TO ASIA.

STANS AND HIS PARTY LEAVE FOR TOKYO TOMORROW AND EXPECT TO BE BACK ON 18 MAY AFTER HOLDING DISCUSSIONS ALSO IN SEOUL, TAIPEI

AND HONG KONG.

2. HIS LINE IS UNLIKELY TO DIFFER SUBSTANTIALLY FROM THE ONE HE

FOLLOWED IN EUROPE. HE WILL CONTINUE TO TRY TO PERSUADE THE ASIAN

GOVERNMENTS TO ACCEPT THE IDEA OF 'A GATT CONFERENCE ON THE EXTENSION OF THE LONG TERM COTTON TEXTILE ARRANGEMENT (L.T.A) TO

MAN-MADE AND WOOL TEXTILES AS THE PRICE OF AVOIDING MORE

RESTRICTIVE TEXTILE QUOTA LEGISLATION BY CONGRESS AND OF GIVING

PRESIDENT NIXON POLITICAL ELBOWROOM FOR DEVELOPING A GENERALLY

LIBERAL FOREIGN TRADE POLICY. THE DEPARTMENT OF COMMERCE HAVE

BEEN DOING WHAT THEY CAN TO STREGTHEN THE VERY THIN CASE FOR

REGARDING THE U.S.TEXTILE INDUSTRY IN ITS PRESENT BOOM CONDITION

AS SERIOUSLY THREATENED BY A CONTINUING UNRESTRICTER RISE IN IMPORTS, BUT BASICALLY THE ARGUMENT WILL AGAIN BE PRESENTED IN TERMS OF THE POLITICAL IMPERATIVE RESULTING FROM THE PRESIDENT'S

PRE-ELECTION COMMITMENTS TO THE SOUTHERN REPUBLICANS.

3. STANS RETURNED FROM LUROPE WITH A STRONG IMPRESSION OF THE

NEGATIVE ATTITUDE OF GOVERNMENTS THERE TOWARDS HIS TEXTILE PROPOSALS, BUT UNCONVINCED THAT IN THE LAST RESORT THEY WOULD REFUSE TO GO

ALONG WITH THEM SO LONG AS THEY WERE PERSUADED THAT FOR THE MOST

PART ONLY ASIAN GOODS WOULD BE PRACTICALLY AFFECTED. HE PROBABLY

HOPES THAT IF THE ASIAN COUNTRIES PLAYED BALL EUROPE WOULD NOT

POSITIVELY PUT OBSTACLES IN HIS WAY. PENDING STANS' ASIAN TALKS NO DECISIONS HAVE BEEN TAKEN BY THE ADMINISTRATION ABOUT FUTURE MOVES, INCLUDING WHETHER OR NOT FORMALLY TO PROPOSE A GATT CONFERENCE AND AN EXTENSION OF THE L.T.A.

RECEIVED IN REGISTRY No.51 12 MAY 1969

14XK6/30/1

CONFIDENTIAL

/ WE HAVE

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