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4. IN REPLY, DOHNANYI POINTED OUT THAT SIMILAR PROBLEMS EXISTED IN GERMANY, BUT THE FEDERAL GOVERNMENT WERE TRYING TO SOLVE THEM IN OTHER WAYS. THEY COULD NOT BE SOLVED BY RESTRICTIVE TRADE POLICY, AND HE DID NOT THINK THE WAY PROPOSED BY MR. STANS WAS THE RIGHT WAY. HE OBJECTED TO THE SECTORAL APPROACH ADVOCATED BY MR. STANS ON
THREE MAIN GROUNDS :-
(1) THE DANGEROUS PRECEDENT WHICH WOULD BE CREATED (STEEL, AND
NOW TEXTILES):
(11) THE NEED TO AVOID CONFRONTATION BETWEEN THE U.S.A. AND
EUROPE ON THE ONE HAND, AND ASIA ON THE OTHER. HE HERE REFERRED TO THE ONE WORLD+ CONCEPT:
(111) THE IMPRACTIBILITY OF OPERATING VOLUNTARY RESTRAINTS IN THE
TEXTILE SECTOR, AS COMPARED WITH STEEL..
RECOGNISING HOWEVER, THE EXISTENCE OF A PROBLEM, HE PUT FORWARD A SUGGESTION, FOR THE AMERICANS TO THINK OVER, THAT A FACT-FINDING GROUP MIGHT BE ESTABLISHED IN G ATT TO EXAMINE THE DIFFICULTIES
IN THE WHOLE TEXTILE FIELD.
5. THIS SUGGESTION WAS IMMEDIATELY REJECTED BY THE AMERICANS,
WHO SAID THAT IT WOULD LEAD TO NO USEFUL
NO USEFUL RESULT AND WOULD TAKE TOO LONG. IT DOESN'T SERVE OUR PURPOSE. IT WAS,, HOWEVER, AGREED THAT THE EXCHANGE OF VIEWS HAD BEEN USEFUL AND THAT THE DISCUSSIONS
WITH MR. STANS SHOULD BE FOLLOWED UP BILATERALLY.
FCC PSE PASS: PRIORITY
ROUTINE
SAVING
SIR ROGER JACKLING
UKMIS GENEVA ROME.
?
UKDEL EEC, THE HAGUE, PARIS, WASHINGTON. LUXEMBOURG, BRUSSELS, TOKYO, HONG KONG, BERNE
REPEATED AS REQUESTED/
INTERNATIONAL TRADE DISTRIBUTION
COMMODITIES DEPT.
TRALE POLICY DEPT.
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