Our anxiety remains that the US should be restrained from extending restrictions into the IMF and woollen fields and we
would prefer that any further moves over this problem should be made within the GATT. Te recognise that the determinatim of
the Americana means that there may well have to be some sort of compromise with the inflexible opposition so far presented to their proposals even though their economic case is a bad one. We intend to keep in touch with the Japanese sad of course with Heng Keng Cur present thinking is also broadly in line with that of the ESC who indicated at the CTC that they favoured a GATT study of the problem and will no doubt develop this proposal
at the rosumed session in December. We do not expect the Americans to set unilaterally or allow Congress its head before then.