So far as Mr. Stans's forthcoming visit to the
Far East was concerned, the Prime Minister mentioned
the delicate political situation in Hong Kong.
As he would know, we had faced a serious situation
a year ago, inspired in part at least by subversive
influences in communist China. Although the Hong Kong
industry had done very well, it had to be recognised
that these elements would be very quick to make the
most of any propositions. which the United States
Government might put forward affecting employment
prospects in Hong Kong.
The President, said that an extension of the L.T.A.
on cotton textiles to M.M.F. and wool would create
problems in relation to U.N.C.T.A.D. We also saw
dangers in the increase of protectionist pressures
in other countries, including the United Kingdom, as a
result of steps to protect the United States textile
industry. The problem as we saw it was that the case
which the United States Government would be presenting to G.A.TT.would be a difficult one to prove, and would be
unlikely to carry conviction with most other countries.
Mr. Stans said that the United States would need to
do more homework on this question. He referred
particularly to special problems facing some segments
of the industry. He emphasised that the steps which
the United States Government had in mind in relation to
textiles, would not affect the United Kingdom exports
to the United States market. If a solution to the
textile problem could be found, then the United States
/Administration