CONFIDENTY AL
in mind the danger that if the US is enabled to protect
the textile industry which has a relatively weak case,
this will encourage other protectionist lobbies in America
and could lead to a chain reaction of protectionism in
other countries.
4. Mr. Stano has not given up his search for somo
internationally respectable means of restraining imports
of textiles into the US but at the came time he has also
threatened that if his objective cannot be achieved by
other means, the US might take unilateral action, possibly
through pressures in Congress. There is evidence that
Mr. Stans' tactics are not supported elsewhere in the
Administration (including the State Department) but he
claims to have the support of Mr. Fixon.
5. It is not clear how far in fact Hr. Nixon is fully
behind Mr. Stans' handling of this problem. It is against
this background that our Embassy in Washington have floated
the idea of a message from the Prime Minister to the
President indicating our concern. A reply has now been
sent to Washington to the effect that such an approach at
this stage might be premature and that we should save our
thunder until the American position becomes clear. We
have indications Prom Geneva this week that the Americans
WEEKS. may play this rather cauticusly over the next few d
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CONFIDENTIAL