CONFIDENTIAL
WASHINGTON TELEGRAM NO.2714 TO FCO.
-3-
PRECEDENT WOULD PROBABLY BE OTHER U.S. INTERESTS (SEVERAL OF WHOM, LIKE THE SHOE MANUFACTURERS, HAVE INDEED A BETTER ECONOMIC CASE THAN THE TEXTILE INDUSTRY) BUT ANY OTHER COUNTRY WHICH WANTED TO
THUMB ITS NOSE AT G.A.T.T. WOULD FEEL ENCOURAGED TO DO SO:
OR (B) TAKING THE RETALATORY ACTION WHICH G.A.T.T. FERMITS WITH
ALL THE CONSEQUENCES THAT THIS WOULD HAVE FOR RELATIONS BETWEEN THE UNITED STATES AND ITS TRADING PARTNERS. AT PRESENT, SINCE THE U.S. HAVE NO POWER TO GIVE COMPENSATORY TARIFF CONCESSIONS,
BENEFITS MIGHT HAVE TO BE WITHDRAWN FROM AMERICAN EXPORTS.
4. EITHER ALTERNATIVES WOULD MEAN DAMAGE, POSSIBLY SERIOUS, TO
INTERNATIONAL TRADE RELATIONS AND WOULD SERIOUSLY PREJUDICE ·
THE DEVELOPMENT OF A LIBERAL AND ORDERLY INTERNATIONAL TRADE
SYSTEM. IN SUM, UNLESS THE AMERICANS CAN SOON BE CHECKED, WE SHALL REACH A SITUATION IN WHICH, WHETHER WE FIGHT OR WHETHER WE RUN, THE HARM WILL BE DONE.
5. AT THIS STAGE ONLY THE PRESIDENT CAN DECIDE TO CHANGE COURSE
IN THE ADMINISTRATION, AND ONLY HIS AUTHORITY WOULD BE LIKELY TO DEFLECT CONGRESS IF THE LATTER TRIED TO IMPOSE LEGISLATION. FROM
THE EVIDENCE AVAILABLE IT IS BY NO MEANS CERTAIN THAT THE TEXTILE
ISSUE HAS BEEN PUT TO THE PRESIDENT IN ITS BROADER CONTEXT OR THAT
HE HAS BEEN MADE CONSCIOUS OF THE CONSEQUENCES OF PERSISTING IN THE
PRESENT POLICY. IT IS CERTAIN THAT THE POINTS CONTAINED IN THE
PRIME MINISTER'S BRIEF FOR THE MILDENHALL MEETING IN JULY (HAYMAN'S LETTER TO TOMKINS OF 4 AUGUST) NEVER REACHED HIM: THE COPY OF THE BRIEF HANDED AT THE TIME TO HILLENBRAND (ASSISTANT SECRETARY OF STATE FOR EUROPEAN AFFAIRS) HAS BEEN HANDLED IN A
ROUTINE DEPARTMENTAL MANNER.
6. I THINK THAT THE ONLY WAY OF BEING SURE OF GETTING OUR ARGUMENTS TO THE PRESIDENT'S ATTENTION WOULD BE BY MEANS OF A PERSONAL
CONFIDENTIAL
/MESSAGE TO HIM