C. & I. 371
2700493
3,000-7/67-B55633
From: Counsellor for Hong Kong Commercial Affairs, Washington
BRITISH EMBASSY, WASHINGTON, D.C.
28 August, 1969.
To
: Director of Commerce and Industry
Memorandum No. 107 (Continued)
RESTRICTED OFFICE CIRCULATION ONLY
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even the slightest sign of international willingness to consider the need for restraints on all fibre textiles, they can magnify it into something much bigger when talking to the textile industry. 5.
While I suggested above that immediate legislative activity on quotas is unlikely, it is possible that a hornet's nest may shortly be stirred up by the introduction of the Administration's long-awaited trade bill. There are persistent rumours that this will be sent to Congress early in September, and that it will contain not, only the previous Administration's three basic points (renewed tariff-cutting authority, abolition of A.S.P. and eased adjustment assistance) but also a proposal for easier escape-clause action. No official whom I have contacted is in a position to confirm or deny this. I do not myself believe that anything has been decided yet, if only because the trade bill is the responsibility of the Special Representative for Trade Negotiations, and Mr. Gilbert has been ill for some time. (He is not expected to resume work until mid-September at the earliest.) However, if the bill is presented and does not contain a clause about escape-clause action, it may get through the House of Representatives unscathed (if Mr. Mills is in favour of it, which is said to be the case) but it is bound to attract all sorts of quota and other amendments in the Senate. predictable amendment would be to reduce the trigger for escape-clause
One action to any injury greater than what is beginning here to be known as "de minimus"
6.
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It would be fallacious, I think, to suppose that the plan, if it exists, to get easier escape-clause legislation is part of the Administration's strategy on textiles i.e. that they are already thinking of using it to get them off the textile hook. Mr. Stans is still in the textile saddle, and there is as yet no sign that he is wavering in his belief that if the Americans get tough enough (or offer the right inducements) Japan and the other problem countries will decide to give in. However, in the unlikely event of the bill's becoming law before another Japanese refusal forces the Administration to decide on its next textile step, it should greatly strengthen the hand of those government departments which favour a "selective approach" solution to President Nixon's textile problem.
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I am sending a copy of this Nemo to F.C.O. (Miss A. Stoddart), Board of Trade (P. D. Wilson), UKDEL Brussels, Geneva, British Embassy Tokyo and British Embassy Seoul as Ridley
UKMIS and Fretwell, who would normally be keeping them posted, are both away.
2.Beruann
A. Hermann