CONFIDENTIAL
-2-
2. MY AMERICAN COLLEAGUE CONFIRMED THAT LONG HAD TAKEN A VERY FIRM
LINE ON TEXTILES AND STOOD HIS GROUND. PERHAPS HE, LIKE THE
GERMANS, HAD BEEN TOO FIERCE. THIS WAS CERTAINLY STANS'
REACTION. AS TO THE EFFECT ON AMERICAN POLICY, THERE WAS NOW A
CLEAR PICTURE OF THE GATT IMPLICATIONS WHICH CONFIRMED WHAT STANS
HAD HEARD IN BONN AND THE HAGUE AND (RATHER LESS SHARPLY ACCORDING
TO THE AMERICANS) IN BRUSSELS. IT WAS LESS CLEAR WHAT EFFECT
THIS WOULD HAVE ON AMERICAN ACTION. NO DECISIONS WOULD, HOWEVER,
BE TAKEN UNTIL AFTER STANS' FAR EASTERN TOUR.
3.
MY ADVICE, IN THE LIGHT OF THIS, IS THAT THE LINE IN YOUR
TELEGRAM NO 310 IS ABOUT RIGHT FOR HANDLING STANS IN LONDON.
PROVIDED WE FOLLOW AND SUPPORT THE FIRM LINE TAKEN BY LONG AND THE
GERMANS ON SUBSTANCE, I THINK WE COULD AFFORD TO SHOW UNDERSTANDING
FOR THE FIX WHICH THE AMERICANS HAVE GOT THEMSELVES INTO OVER
TEXTILES. WE MUST LEAVE THE DOOR OPEN TO GET THE MAXIMUM POSSIBLE
PRICE OUT OF THEM IF, REJECTING THE ADVICE STANS HAS GOT ON HIS
TOUR, THEY DECIDE TO RESTRICT TEXTILE IMPORTS BY SOME METHOD
OR ANOTHER. IN ANY CASE STANS WILL BE PRETTY EXHAUSTED WHEN HE
GETS TO LONDON ( HE SHOWED SIGNS OF FATIGUE IN GENEVA) AND A LITTLE
KINDNESS MAY HELP THE MEDICINE DOWN.
4. AS TO OTHER TOPICS ON STANS AGENDA, AGRICULTURE AND NON-
TAPIFF BARRIERS GENERALLY, WITH BORDER TAXES, WILL CERTAINLY BE
PAISED IN LONDON. BUT I HAVE THE IMPRESSION THAT THEY WILL BE USED
MAINLY AS AMMUNITION IN THE CAMPAIGN TO GET SOMETHING AGREED ON
TEXTILES. I DO NOT THEREFORE THINK THAT WE CAN BUY STANS OFF BY
OFFERING CONCESSIONS, OR CHANGES IN OUR OWN POSITION, ON THESE OTHER
MATTERS, ALTHOUGH WE SHOULD SHOW SYMPATHY AND SUPPORT FOR THE
AMERICAN DESIRE TO GET THEY FULLY DISCUSSED UNDER THE GATT PROGRAMME
OF WORK.
CONFIDENTIAL
/FCO
1