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conclusion that while we would wish for a short extension
of the Long Term Arrangement, in the longer term we would like to see other countries give up quota restrictions on textile imports. If this does not happen, we run the risk that once our domestic industry is protected only by a tariff, goods which are excluded from other markets by quantitative
restraints may be diverted here notwithstanding the tariff.
3. The main immediate problem however concerns non cotton
textiles. In an effort to further the implementation of
Mr. Nixon's election pledge to US industry Mr. Stans, the
US Secretary for Commerce, undertook a tour of European and some Asian countries (including Hong Kong) during the earlier
part of this year in an effort to secure agreement to some form of multilateral arrangement similar to the present
arrangements for cotton textiles, Coco ver intemational
trade in noa cotton textilos. If such an agreement could bo achieved it would enable the American authorities to negotiate restraint arrangements with the exporting countries and thus
provide protection for the domestic industry. Hr. Stana
met with a solid resistance to his proposals at each placo
which he visited and it was made clear to him in London and
elsewhero that, on the evidence available, there seemod no
good economic case for the protection of the US textile
industry against imports.
It was suggested that any diffi-
culties which were being encountered might be overcome
by domestic measures by the US Administration.
We have also
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