Sunday, May 18, 1969 HONGKONG STANDARD.
CUTS
TEXTILES:
MAY HIT U.S. *IMPORTS
MR. STANS
By BRIAN MCALPINE
ROTECTIONIST forces inside the US Congress are strong and are growing stronger and might grow to the point where restrictive laws are passed against textile imports.
This was stated at a press conference in Hongkong yesterday by US Commerce Secretary Mr. Maurice H. Stans.
Mr. Stans said that if it was possible to find a solution to the textile problem the US would move in the direction of free trade.
"But we cannot do this with a textile disaster hanging over our heads," he told reporters at the Foreign Correspondents Club.
Warning on US imports
Cont'd from P. I'
Mr. Stans said the textile matter stood out alone from all other trade matters because of the serious implications for the US if a solution was not found to the problem.
"We did not seek agreements on this trip. We did not seek to negotiate. The dialogue is still open and will continue through diplomatic channels,'
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A Government spokesman said government representatives took note of the situation explained by Mr. Stans and assured him that they were prepared to renew
discussions at any time at the US Government's' request. It was emphasised that the discussions were exploratory only.
Mr. Stans and the US government party of 14 are due to leave Kaitak this morning for the United States.
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"In Hongkong, we have had thorough and frank discussions with the government concerning textiles and have agreed to continue an exchange of information through diplomatic channels.”
The Hongkong Government had been quite willing to recognise the textile imports problem of the US but had not made a sympathetic response.
He believed a solution could be brought about multi-laterally in discussions through GATT (General Agreement on Tariffs and Trade) or unilaterally by the US.
President Nixon had made
it clear to the US Wool Board recently that he was seeking a solution to the problem. The president would prefer to handle the matter in
cooperation with America's trading partners rather than unilaterally.
No harm
The Administration wanted to restrict the tremendous growth of the market without doing harm to US industry.
From a political point of view it would be much simpler if the problem would go away.
"But foreign policy must exist in terms of the realities at home and abroad, The situation IN becoming intolerable," he said,
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Mr. Stans stated that the US i: was currently importing twice as much as it was exporting to the Colony..
On his return he was to report to President Nixon and the US Cabinet after which there was a
carefully planned programme under which he could proceed under.
Mr. Stans said that those who claimed the US textile industry was prosperous based their assumptions on past figures -- the most recent 1968. But since then US textile industry had been significantly hurt by imports.
In 1961, the US exported more textiles than it imported. Last year the nation imported HK$4,800 million more than it exported. The situation was critical.
"Our industry cannot absorb a continuation of this trend any longer," he said,
SEE PAGE 20
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