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(b)
10 -
The employment factor: since 1961, the increase in employment in the textile industry has been less than in other fields. Some sectors of the industry had had a good deal of investment, stimulated by the C.T.A, but the apparel operations were generally small and had not had any significant investment: 73% in this category had less than 50 workers. The unemployment rate in April 1969 was as follows: 6.9% in apparel, 4.4% in other textiles and 3.2% for all manufacturing industry. Among Negroes the unemployment rate was between 10% and 15%, particularly among the young.
34.
as follows:-
35.
Mr.
Stans said that he would restate the problem,
(a)
(b)
the United States could not adjust to and accept the continued trend in textile imports because of the damage being caused to the domestic industry;
the Administration desired to find a voluntary solution rather than resort to unilateral action;
(c) if no voluntary solution was found, then
Congress would act and that would be helpful neither to Hong Kong nor to the United States.
Mr. Stans went on to say that if the figures that had been tabled were not accepted, then it was clear that Hong Kong did not want to help, adding that Hong Kong might win the debate but lose the argument. He pointed out that this was not meant to be a threat, and hoped that Hong Kong would give sympathetic consideration.
It was,
36.
Mr. Jordan said that the facts presented by the American side about developments within the U.S. textile industry were not denica.
far from however, apparent that the domestic problems in the United States were due to the impact of imports which had remained well below 10% of domestic consumption since 1961. There had been an enormous growth in the domestic market over this period. Domestic production of all fibres had risen between 1961 and 1965 from 6.6 million pounds to 9.7 billion, while imports, which had admittedly more than doubled, had risen only from 334 million pounds to 784 million. Imports' share of the total market had risen also. It was 5.1% in 1961 but even in 1968 it had reached only 8%. The major share of the growth of the market had been taken by the domestic industry. In 1967 domestic production had accounted for 88.7% of
As Sir the growth while imports had taken up only 11.3%. John had said, Hong Kong had its political problems too and in this situation it would be very difficult to convince the Hong Kong industry and the public that restraint on this trade was essential in order to help American industry, and indeed that action to restrain imports would assist the declining sectors of the U.S. industry, since the real competition came from the larger and more efficient units of the industry.
solution with the only hope of success appeared to lie in American domestic action by the extention of "adjustment assistance" which could be used on a selective basis.
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The
CONFIDENTIAL