South Clving
Moming Post 17/5/68;
U.S. could make it tough on textiles issue warns Stans
Tokyo, May 16.
The United States Secretary of Commerce, Mr Maurice H. Stans, said yesterday he was "disappointed" with his mission to Japan, after Tokyo flatly rejected a proposal to establish voluntary quotas on textile exports to the U.S.
Mr Stans, accompanied by 13 aides, arrived by air last night from Taipei for the Hongkong segment of his talks. He will meet the Governor, Sir David Trench, the Hon Sir John Cowperthwaite, Financial Secretary, and Mr A. H. Jordan, Acting Director of Commerce and Industry.
be found at
on a
He will give a press con- He added that more in- hand and legislate a solution. ference this afternoon. The formation would be provided We believe that the legislated American party will return to by both sides and he hoped solution will not be as favour- Washington direct from a satisfactory solution would able to the exporting coun- Hongkong tomorrow.
However, the U.S. Cabinet meetings.
subsequent tries as we (the Nixon Ad- official indicated
ministration) would be will- at a press Mr Stans warned the ing to conference
work out following- his Japanese that meeting with Government took voluntary
unless they voluntary basis." leaders
action there Mr Stans said that Korea that Washington was a would not take "No" for an would take unilateral action importance
.danger Congress "expressed very clearly the
of the answer on its request for
textile to restrict imports. quotas.
industry to Korea and urged The Commerce Secretary that we do not impose restric- trictive policies on trade and also attacked Japan's res- tions on imports from Korea.”
He said the Nixon Ad-" ministration was opposed to taking a unilateral action in controlling imports,
not
"Unfortunately, it is possible for me to accept this rejection-the issue is too im- portant," he said.
on Geneva
capital investments.
to
In a speech earlier in the The Japanese side, Mr day to the American Cham- Stans noted, had refused to ber of Commerce in Japan, joint in multilateral negotia- he said Japan "has grown in tions on textile which the U.S. hoped would it no longer needs the pro- exports, strength to the point where be held under the auspices of
tection and the General Agreement
limitations ap- Tariff and Trade in
propriate
an insecure next month.
nation."
At the press conference, he said he had urged the Japanese to accelerate the The Japanese position is liberalisation of capital in- that no restrictions on exports vestment. especially with are necessary because the regard to automobiles, and American textile industry is to permit 100 per cent prospering. A
of voluntary ownership
American quota, would only injured the operations in Japan. Japanese industry, it was The few foreign manufac- asserted.
turing enterprises allowed in
Restrictions
а
"We will pursue our efforts for that reason to find
on a mutual basis,” he said. solution that is satisfactory to use and to our partners
In Taipei, Mr Stans failed to persuade Taiwan to ex- *ercise self-restriction on its growing exports of textile products to the United States. Taiwan Minister of Econo- mic Affairs,
Mr K. T. Li confirmed a local
report to that effect at an airport news conference held jointly with Mr Stans before he left for Hongkong.
B[
ա:
Mr Stans insisted "no Japan usually are limited to peq Japanese would lose their 50 per cent ownership. jobs" as a result of the quota The Japanese response to id: plan envisaged by the Com- this request "was not grati- merce Department.
fying." Mr Stans said. This plan contained no Meanwhile representative "rollback" of textile imports Mr J. Bryan Dorn (Dem, SC), z of the kind sought by Ameri- introduced in Congress yes- can textile companies, he terday a resolution commend- argued.
ing the U.S. Secretary of Instead, the quota would Commerce, Mr Maurice be set at the 1968 import Stans, for his trade missions | level, which absorbed a to Europe and the Far East.
record amount of textiles Unfavourable from Japan.
14:
X
CIS n:
The Japanese and other In a speech in the House exporters also would be of Representatives, Mr Dorn of given a share of increases in said: "Secretary of Commerce U.S. textile consumption. Stans realises the danger of Tokyo's rejection of a Our unfavourable trade solution on textile imports balance with Japan and is was based on a "prejudg- taking positive action before ment" founded on insuffi- it is too late. cient information, the Com- merce Secretary declared.
"Mr Stans is giving special pre attention to the deteriorating eral.
h
textile situation. The United States hasn't had a favour- able textile trade balance since 1957
12 years ago. While textile exports since 1957 have increased by about $170m from $525m to $694m, imports have soared from $562m to $1,800m. This left us with a textile trade deficit in 1968 of $1,100m and the gap grows wider every year," he added.
In Seoul, Mr Stans earlier said the U.S. Congress could make it tough for America's trading partners if they did not voluntarily cut exports.
"There is a strong feeling of protectionism that is grow- ing in our Congress," Mr Stans said at a press con- ference shortly before his de- parture after a three-day visit.
"This (protectionism) is directed not only at textiles but at a number of other imported products that are coming into the U.S. in con- siderable quantities," he said. "It is my opinion that if we do not find a negotiated solution on a friendly basis with our trading partners, the Congress may well take the matter with its own