daily
DAMAGE
**But other economic considerations
(such as
US. Investment in Hong- kong) would not be enough to: compensate for the damage being done to our... home textile industry by imports from the Far East."
Mr Stans discussed other countries' reactions to his proposals for a voluntary restriction on textile ex- ports.
"Japan's initial reaction was one of refusal,” Mr Stans said.
"But we have agreed to continue a dialogue with the Japanese on this matter.
"I am not sure that our proposals were refused in Taiwan and South Korca.
"But the governments of both countries were rc- luctant to condone dis- cussions that might modify, their national growth rates. (by restricting textile ex- ports).
1
"We did not make this tour to seek negotiations, only to present the problem to exporting countries and get their reactions to the situation."
IN FAVOUR.
Mr Stans said President Nixon had expressed him- self "strongly in favour of freer trade."
"But the objective of. freer trade cannot be at- tained unless we recognise that there is a certain rate. at which the U.S. is able to receive textile imports.
"Textile imports are now coming into the U.S. faster than we can absorb them; last year alone they in- creased by 54 per cent in
one year,
"We cannot absorb this to our rate without hurt
economy.'
Mr Stans said the U.S.
government did not
pose a reduction, but
7
pro-
an
increase, in textile imports
above the present level.
"We have not
discussed
what percentage increase in textile imports the U.S. economy would be able to absorb," he added. ·
"But protectionist forces keen to cut down on U.S. imports are becoming strong in Congress.
"Unless we find a volun- tary solution to the prob- lem of textile imports, the evidence is that Congress
legislation to. will pass raise tariff walls on import quotas."
Mr Stans said that what- ever
action the
government
U.S.
took would
depend on President Nixon,