Reference

U.S. Imports of Cotton Textiles

11 86

17. Mumay

Dr. Stewart

shd see this on

return. Wa

2376

Immediately after Mr. Stans' visit, it was suggested that Industries I should consider all the information which they had produced with a view to producing a "White Paper" which could be handed to the Americans exposing the weakness of their case. This secmed to us a very good idea, and I have spent a considerable amount of time in preparing the attached note. In the process I have learned a good deal myself and I think that it would be valuable to give it to the Americans at an early date. You will remember that Mr. Stans gave us a lot of charts and this might offer a convenient excuse for the Ambassador to write to Mr. Stans enclosing a copy of the memorandum. One has the impression at times that Mr. Stang has only seen one side of the case and that a straightforward analysis on the lines of the attached paper might cause him to reconsider his tactics. My own view is that the Anericans probably have an Article XIX case on shirts and sweaters and that it would be better to head them in that direction than to give way to their demands for a comprehensive system of voluntary restraints on trade in non-cotton textiles.

2. You will see that some of the annexes are still in the course of preparation but the absence of these need not hold up consideration of the issue whether or not we should give the Americans the document on the proposed lines.

3. My intention would be to give copies of the document to the E.E.C. countries, the European Commission and Japan to fortify them in their opposition to what the Americans are currently proposing.

4. I am sending a copy of the papers direct to Mr. Ridley in Washington to give him the opportunity to express his views at an early stage.

Mr. E.W.M. Maror (CR4)

c.c. Mr. P.W. Carey (I.1)

Mr. D.I. Dunnett (CRİ lir. 0.11. Kenmis CR1

Mr. W.S. Carter (FCO) Mr. G.S. Whiteheau (FCO), Kr. C.N. Jupp (1.1) Mr. J. Pownall (1.1) Miss C. Welch (1.1) (o.r.).

{:}}'(o.r.).

RECEIVED IN REGISTRY No.51

LIJUN 1969

і нальфоції

S. STEWART, Ind. 1,

20th June, 1969.

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