DRAFT

EPTA MINISTERIAL MEETING

NON-COTTON TEXTILES

US AND ASIAN SUPPLIERS

༢.

There is no indication of any change in the US stand for across-the-board restraint by Asian supplying countries of

non-cotton textile exports to the US. The Japanese remain under strong American pressure and there is some doubt as to whether they will be able to resist much longer; when the Foreign Secretary was in Tokyo they were talking in terms of

One not being able to hold out for more than another month.

reason for this is the recent introduction by Congressmen Mills of a Bill containing a formula for the control of all imported textiles as well as leather footwear which provides annual limits of these items based on the movement of domestic

Another recent development is that the Americans have invited the other major Asian suppliers (including Hong Kong) to discuss arrangements for limiting exports of non-cotton

consumption.

textiles at the same time as the new arrangements under the

Cotton Textiles Agreement are discussed.

if anyone will accept this irvitation.

2.

We do not yet know

Our concern is that the Americans should not be enabled

to enter freely into agreements for comprehensive restraint

of textile imports without attempting to show that these are

"There causing any real injury to their own textile industry.

is no possibility that the Americans could prove any case of

We have been injury except on a very small number of items. considering whether we should take an initiative to have the problem of nor-cotton textiles discussed in GATT with a view

to ensuring that there should he some GATT agreement on what constituted sufficient injury to warrant action being

I support for

taken.

Since SEC such a move would be essential

Officials

of the Commission have been sounded on this proposal and

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