other fibres.
(6) In 1968 there had been a big increase in the US
Imports of mmf last year
trade deficit in textiles.
had increased by 54% and there was growing concern
with the trend line.
(7) The forces at work in the US were both political
and industrial and came both from political circles
and also from labour organisations. The latter were
disturbed and exercised a strong influence.
Without
a voluntary restraint arrangement, they in conjunction
with Congress might move to unilateral legislative
action. The protectionist forces in Congress were
strong as evidenced by the Hollings Bill last year
and Mr. Mills' Bill this year. 365 Bills of a
protectionist nature had been introduced in the
Congress.
ས་
Mr. Mills had said that the Textile Bill
could pass Congress with ease and could develop into
a "Xmas tree" of protectionism in other fields also.
(8) Mr. Nixon was committed to freer trade
and had tended to move in that direction but he does
not believe that there is any chance of this while
the textile matter remains outstanding. He would
prefer some voluntary way of dealing with this
problem but the economic, political and social
problems involved were persistent and increasing.
3
/ (9)