CYPHER/CAT A
PRIORITY WASHINGTON
TELEGRAM NUMBER 715
SECRET.
SECRET
42
GUARD
TO FOREIGN AND COMMONWEALTH OFFICE
9 MARCH, 1970.
GUARD.
PERSONAL FOR BOTTOMLEY, HUGHES (BOARD OF TRADE) AND CAREY (MINTECH),
FROM RIDLEY.
U.S. TEXTILE IMPORTS.
I INVITED TREZISE (ASSISTANT SECRETARY OF STATE FOR ECONOMIC AFFAIRS) TO LUNCH TODAY, MAINLY TO TALK ABOUT THE GENERALISED PREFERENCE SCHEME (ON WHICH WE ARE REPORTING SEPARATELY). IN THE
COURSE OF THE DISCUSSION HE PUT FORWARD A PROPOSAL FOR BREAKING THE
IMPASSE ON THE NON-COTTON TEXTILE PROBLEM. HE EMPHASISED REPEATEDLY
THAT HE WAS DOING SO ON A PERSONAL BASIS AND ASKED THAT HIS
CONFIDENCE BE RESPECTED.
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2. BY WAY OF BACKGROUND HE SAID THAT THE DISCUSSIONS WITH JAPAN
APPEARED TO BE GETTING NOWHERE. THE DEPARTMENT OF COMMERCE CONTINUED
TO INSIST UPON A COMPREHENSIVE SOLUTION. (ONLY LAST WEEK THE
SECRETARY OF COMMERCE REAFFIRMED PUBLICLY HIS COMMITMENT TO SUCH A
SOLUTION IN A LETTER TO MEMBERS OF THE HOUSE OF REPRESENTATIVES)
PRESIDENT NIXON HAD AVOIDED PUBLIC COMMITMENTS SINCE HIS INAUGURATION
BUT REMAINED DEEPLY CONVINCED OF THE NEED TO RELIEVE THE PRESSURE
FROM DOMESTIC TEXTILE INTERESTS. IN THE ABSENCE OF A NEGOTIATED
SETTLEMENT LEGISLATION FOR QUOTAS ON SHOES AND TEXTILES, WHETHER
INDEPENDENTLY OR AS A RIDER TO THE TRADE BILL, WOULD INEVITABLY BE PROPOSED, AND TREZISE BELIEVED THAT A MEASURE WITH THE COMBINED
SUPPORT OF SHOE AND TEXTILE BACKERS IN CONGRESS WOULD BE EXTREMELY
DIFFICULT TO VETO. HE RECOGNISED THE GATT CONSEQUENCES OF IMPOSED
QUOTAS BUT FEARED THAT THIS COULD BE THE START OF AN INTERNATIONAL
AVALANCHE OF RECIPROCAL TRADE RESTRICTIONS.
3. HE ASKED WHETHER IN THIS SITUATION THERE WOULD BE ANY CHANCE
OF WORKING OUT A COMPROMISE SOLUTION REGARDING HONG KONG WHICH COULD
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