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5

disclose the names of the other countries at this stage.

Requests for negotiations would be limited to"low-cost"

suppliers. It was not the U.S. Government's intention

to seek restraint on imports of woollen goods from the

United Kingdom

9.

Mr. Stewart asked whether and how the U.S.

Government could differentiate between "high" and "low"

cost suppliers. Did the U.S. Government mean it intended

to take discriminatory action against Asian suppliers

and not against European countries? He noted for example

that in square yards equivalent West Germany had in 1968

been the second principal supplier of man made fibre.

textiles to the U.S. and that of the growth in imports

during the period 1966-1968, 1/3rd had come from Japan,

South Korea, Taiwan and Hong Kong whilst 2/3rds of the

growth had come from other suppliers. Mr. Nehmer pointed

out that the principal imports from West Germany were

n.m.f. yarns which were used in other sectors of the

U.S. textile industry and furthermore, in value terms

West Germany was far from being a principal supplier.

10.

Mr. Nehmer said that it may be necessary later

to seek consultations with some low cost European exporters.

The U.S. Government was concerned with equity in these

matters. With regard to the question of disruption,

he recalled that U.S. Secretary of Commerce, Mr. Stans,

/had

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