CYPHER/CAT A
PRIORITY WASHINGTON
TELEGRAM NO 1682
CONFIDENTIAL.
NEUTRAL.
CONFIDENTIAL
is the 175
TO FOREIGN AND COMMONWEALTH OFFICE
5 JUNE, 1969
ADVANCE COPIES PLEASE TO DRUKKER AND INGLEFIELD
(BOARD OF TRADE) AND DIXON (M.A.F.F.).
MY TELEGRAM NO GRUB 18, PARAGRAPH 3: DR HARDIN'S VISIT.
ON TEXTILES IT MIGHT BE PUT TO HARDIN THAT MR STANS HAS COMPLETELY FAILED TO MAKE ANY CASE OF SERIOUS INJURY FROM IMPORTS TO THE U.S. TEXTILE INDUSTRY IN GENERAL TO JUSTIFY THE PROPOSED RESTRAINTS. HE NEVERTHELESS STILL SEEMS BENT ON GETTING
RESTRAINTS ON NO BETTER ARGUMENT THAN THAT TEXTILES ARE A SPECIAL CASE AND APPEARS EVEN TO BE THREATENING UNILATERAL. ACTION IF PROGRESS TOWARDS A NEGOTIATED ARRANGEMENT IS NOT ACHIEVED WITHIN 90 DAYS. IF EXPORTING COUNTRIES ALLOWED THEMSELVES TO BE CAJOLED OR COERCED INTO A GENERAL TEXTILE LIMITATION ARRANGEMENT IT WOULD BE OBVIOUS TO THE WHOLE WORLD THAT DOMESTIC POLITICAL PRESSURES IN THE UNITED STATES HAD PREVAILED OVER THE GATT RULE OF LAW IN INTERNATIONAL TRADE. THE PRECEDENT COULD HARDLY ENCOURAGE A POSITIVE RESPONSE TO U.S. PLEAS FOR FAIR TREATMENT FOR AGRICULTURAL EXPORTS. IT: WOULD BE ONLY TOO EASY TO ARGUE THAT AGRICULTURE IS SPECIAL TOO, 2. EVEN MORE DIRECTLY RELATED TO THE QUANTITY OF U.S. AGRICULTURAL EXPORTS ARE THE CURRENT TRENDS IN U.S. THINKING TOWARD A PROTECTIONIST SHIPPING POLICY. NO DECISIONS HAVE YET BEEN TAKEN BUT THERE IS CONSIDERABLE PRESSURE HERE FOR AN EXTENSION OF THE PRESENT CARGO PREFERENCE LAWS TO DIRECT MORE CARGO TO U.S.
FLAG SHIPS. THIS COULD HAVE SERIOUS REPERCUSSIONS FOR BOTH SHIPPING AND TRADE. IT WOULD ALSO DIRECTLY INHIBIT U.S. AGRICULTURAL EXPORTS SINCE THE FREIGHT RATES PAYABLE ON U.S. SHIPS ARE 2 TO 3 TIMES HIGHER THAN THOSE PAYABLE IN THE WORLD MARKET. THE U.S. DEPARTMENT OF AGRICULTURE IS GENERALLY OPPOSED TO CARGO PREFERENCE FOR THAT REASON AND IN THIS THEIR INTERESTS
ARE ALIGNED WITH OURS. THEY WOULD BE USEFUL ALLIES AND THE OPPORTUNITY SHOULD WE SUGGEST BE TAKEN TO MAKE THEM AWARE OF
THE CURRENT PRESSURES.
FCO PASS COPY TO BOARD OF TRADE (INGLEFIELD) AND K.A.F.F. (DIXON)
R. FREEMAN
RECEIVED IN
[COPIES SENT TO B.O.T. AND K.A.F.F. FOR RCISTRY!!51
ADDRESSEES]
INTERNATIONAL TRADE DISTRIBUTION
COMMODITIES DEPT.
·5 JUN 1969
AKK6|304|1.
N. AM. & C.D.
GGGGG
CONFIDENTIAL