t

709

RECEIVED IN

STRYNO.253

14 JUL 1969

MTIB04/3

CONFIDENTIAL

U.S. Trade Policy

}

BRITISH EMBASSY,

WASHINGTON, D.C.,

11 July, 1969

Textiles

256

198

! Photocopy

to his fallers

under Cauf ship.

R&R

*6/304/1 Alar

Stans' long overdue plan for dealing with non-cotton textile imports was presented to the White House at the end of last week. Administration officials are preserving, for Washington, unusual reticence about its contents and this. week both Stans himself and the White House press epokesman have

We have as refused to answer journalists' questions about it.

'But we understand yet no authoritative account of it ourselves. that it continues to advocate the negotiation of a generalised system of restraints on L.2.A. lines together with an early announcement by the United States of the withdrawal of their tariff bindings on textiles under the GATT Article XXVIII procedure. We are not clear whether the tariff proposal is intended as an alternative to quantitative restrictions or is intended to pressure

nor is it certain whether foreign countries into accepting them; the withdrawal would apply to all textile tariffs or only to those

The Department of Commerce seen to hope on non-cotton products. that, if the President accepted the plan, proposals for negotiations would be put to the countries concerned fairly soon, although it is recognised that for practical reasons. tulks could not start before about September.

2.

The report has been circulated to the other U.S.

According to Mike Government agencies concerned for comment.

Again Daniels (representing the textile group of the American Importors Association) the response is almost uniformly critical. we do not yet know just what the arguments are, but they apparently lay stress on the poor chances of acceptance in the light of the foreign reception accorded to Stans' earlier soundings, and the damage which U.S. foreign trade relations would suffer from either a rebuff or an attempt to force the Thore seems to be a general awareness of proposels through. the unreality of the Article XXVIII approach and of the high potential cost of compensation perticularly as, in the absence of any powers on the part of the Administration to give tariff concessions on other imports into the United States, this would have to take the form of a withdrawal of benefits abroad.

2. W. Carey, Esq.,

Board of Trade.

cc's: G. J. Mackahon, Esq., C.3.,C..G., Board of Trado

X. G.Britton, Esq., Trade Policy Dept., F.C.o. F.H. Jackson, Esq., 0.B.B., UKDE), BĒC Árussols 4.0. Bustoa, Esq., UKIIS Cunova

Director of Commerce and Industry, Hong Kong H.A.H. Cortazzi, Esq., C.1.G., Tokyo

R. Goldsmith, Esq., Board of Trade.

Thero

29/7

RECEIVED IN REGISTRY No.51 29 JUL 1969

MARKO 304/1

Pl. copy quickly

to Comentontics

CONFIDENTIAL

Dept and NAD Am. Depl

Leg.

Miss Stoddart

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