CONFIDENTIAL
.2.
GATT AUSPICES OF THE 1962 LONG-TERM ARRANGEMENT ON COTTON TEXTILES. WE HAVE BEEN TOLD PRIVATELY THAT THE U.S. GOVERNMENT WOULD NOT EXPECT TO INVOKE ARTICLE 3 OF THE ARRANGEMENT TO REQUIRE RESTRAINT OF EXPORTS BY EUROPEAN COUNTRIES. THROUGH THIS STRATAGEM, AND BY PUTTING THE PROPOSITION IN THE FIRST PLACE TO EUROPEAN GOVERNMENTS ONLY, THEY PLAINLY HOPE TO BREAK UP THE COMMON FRONT OF TEXTILE EXPORTERS AND TO LEAVE THEMSELVES FREE TO CONCENTRATE, WITHOUT FORMAL DISCRIMINATION, AGAINST COUNTRIES LIKE HONG KONG, JAPAN, KOREA AND TAIWAN WHOSE GOODS (THEY CLAIN) ARE CAUSING THE REAL TROUBLE.
F.C.O. PASS TOKYO, HONG KONG. AND SAVING TO BRUSSELS, UKDEL EEC. BRUSSELS, THE HAGUE, BONN, UKMIS GENEVA, BERNIE, ROME AND PARIS.
MR. FREEMAN
[REPEATED
INTERNATIONAL TRADE DISTRIBUTION
A 3
REQUESTED].
TRADE POL. DEPT.
COMMODITIES DEPT.
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