فن
C
Aerioulture
27.
Kr. Stans said that the main U.S. problems concerned the EEC and not UK. He was particularly perturbed about soya beans and tobacco and felt that if the FEC persisted with their precant policy, it could lead to strong political pressures in the U.S. as well as sovore economic problems. His view was that price support programos should be accompanied by production limits, 30 as to avoid the drastic over-production now occurring in Europe, particularly of He felt it was dobatable whether price support was preferable to direct support, and pointed out that, without substantial assistance of some sort, the EEC would be in no position to compete with the more technically advanced U.S. Agricultural Industry.
28.
Mr. Dixon (MAFF) said that we understood the U.S. problems and that all these subjects were being currently studied and discussed in GATT and OECD. The policy of the U.K. Government was selective expansion based on the most economically viable products. We had recently increased our incentives for cercals because we expected an increase in demand. This should, however, have no significant effect on our imports from the U.S. which consisted largely of hard wheat and maize which wo could not grow ourselves. The Minister of State, PCO (Mr. Hulley) said that our being the largest importer of agricultural produce in the world brought its own problems; we had to ensure that our domestic producers should continue to have adequete access to the U.K. narkot.
Textiles
29. Mr, Stans explained that President Nixon had made commitments to the textile industry to prevent disruption of the industry by restricting imports. The problem was important politically and socially because the industry employed large numbers of people, particularly from the coloured minority groups. There had been a startling increase in imports and an ever-increasing trade deficit on textiles. Imports or man-made fibres had increased 54% in 1958 and the rot trade defioit on all textiles had increased 60%; in the past 6 years the trade balance had moved from ́a surplus to an overall deficit of $800 million. The main problem was importa from Eastern countries, in particular, Japan, Korea, Taiwan and Hong Kong, primarily because of the very low wage rates in those countries. The United States was the only major country without any restrictions on imports of textiles and had to take action to protect herself. The current level of imports could just be accepted by U.S. industry if it were to remain stable, but if imports continued to imrease at the same rate they would be highly disruptive. Mr. Stans considered that an extension of the WTA to cover man-made fibros and wool, allowing for a planned increase of imports, would be the best solution. He was not proposing any roll-book from the 1958 levels of imports and this proposal would not affect imports from the U.K. 16. Stana referred to Italy as the only European country causing concern.
30.
Tho political significance of the textile problem was even more important than the economic situation Amarican political problems inevitably had inter- national repercussions, and there was terrific pressure on Congress for unilateral action. As an example, last year the Hollings Bill, which wes "quite extrem", involving a cut back on imports ranging from 30% to 80% had Ranboys been passed by the Senate and had only bean stopped in the House. President Nixon, as he had seid earlier, did not believe in quotes or in unilateral action and hoped for a multilateral voluntary agreement. Pressure in Congress was so great that the President felt there was no hope of pushing through legislation on ASP and the other trade legislation without soca form of agreement on textiles. He realised
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