Ustle

ADV

sent to PUS

foir A helling.

104

HONFO844/24

Q

XeRECEIVED IN

FRETRY No.51

28 APR 1969

1 Me Conals

00 FCO®

CYPHER/CAT A.

NIKK 6/304/1

Ytd Commodite's

тро

TO FOREIGN AND COMMONWEALTH OFFICE

IMMEDIATE WASHINGTON

TELEGRAM NO 1275

24 APRIL 1969.

CONFIDENTIAL.

NEUTRAL.

the Stewart Bor

AC

ÅDDSD TO FCO TELNO 1275 OF 24 APRIL REPTD FOR INFMN UKMIS GENEVA HONG KONG AND SAVING TO ROME PARIS BONN BERNE UKDEL EEC BRUSSELS THE HAGUE TOLKYO BRUSSELS.

2

UKMIS GENEVA TELEGRAM NO 237 VISIT OF MR STANS.

by Hem

Lot trade)

WILDUR

THE STATEMENT BY THE US MISSION IN GENEVA THAT MILLS HAD TELEGRAPHED TO STANS IN GENEVA TO SAY THAT IF THE ADMINISTRATION DID NOT ACT CONGRESS WOULD' IS MISLEADING.

WE HAVE LEARNED IN CONFIDENCE FROM MILLS' OFFICE THAT HIS TELEGRAM DID NO MORE THAN REPEAT THE GUARDED LINE HE TOOK IN HIS SPEECH OF 27 JANUARY BEFORE THE NATIONAL COTTON COUNCIL TO THE EFFECT THAT IMPORT LIMITATIONS WOULD HAVE TO BE CONSIDERED BEFORE THE GOVERNMENT OR CONGRESS WOULD ALLOW THE TEXTILE INDUSTRY TO BE DESTROYED (UNDERLINE LAST WORD).

2. THE AMERICAN TEXTILE MANUFACTURERS INSTITUTE HAD ATTEMPTED TO PERSUADE MILLS TO SEND A STRONGLY WORDED TELEGRAM TO STANS AND PRESENTED HIM WITH A DRAFT CONTAINING EXPLICIT THREATS OF CONGRESSIONAL ACTION. THEY ARGUED THAT INTERVENTION ON THESE LINES BY MILLS WAS NECESSARY TO COUNTER LOBBYING IN EUROPE BY AMERICAN IMPORTING GROUPS AND TO STRENGTHEN STANS'HAND IN HIS TALKS. MILLS REFUSED TO SEND THIS DRAFT AND SUBSTITUTED HIS OWN WATERED-DOWN VERSION WHICH DID NOT COMMIT HIM OR CONGRESS TO TAKE ACTION.

3. SUGGESTIONS ARE APPEARING IN THE FAIRCHILD NEWSPAPERS THAT PRESIDENT NIXON MAY PROPOSE A TEXTILE QUOTA BILL AT THE SAME TIME AS HE PUTS HIS EXPECTED PACKAGE OF TRADE LEGISLATION TO CONGRESS, WITH THE AIM OF PUTTING ADDITIONAL PRESSURE ON FOREIGN GOVERN- MENTS TO MAKE CONCESSIONS ON TEXTILES. THERE IS NO EVIDENCE THAT THE ADMINISTRATION INTEND TO DO THIS, BUT CONGRESSIONAL SUPPORTERS OF THE TEXTILE INDUSTRY MIGHT WELL ATTEMPT TO EXERCISE PRESSURE IN THIS WAY IF NEGOTIATIONS ON TEXTILES TOOK PLACE WHILE TRADE LEGISLATION WAS BEFORE CONGRESS.

FCO PASS UKDIS GENEVA HONG KONG AND SAVING TO ROME PARIS BONN BERNE UKDEL EEC BRUSSELS THE HAGUE TOKYO BRUSSELS. FREEMAN.

106

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