246
GPS 200
PRIORITY
CYPHER/CAT A
CONFIDENTIAL
FROM WASHINGTON 171939Z
CONFIDENTIAL [NSUTRAL]
HKK 121
2/616/1
FA
1800
TO PRIORITY FCO 4500 OF 17 OCTOBER 1977.
INFO PRIORITY UKREP BRUSSELS, ROUTINELUKMIS GENERVA,
TELECON GENT/ABRAMSON: MFA.
1. DURING THE AMBASSADOR'S DISCUSSION WITH THE SPECIAL TRADE REPRESENTATIVE, STRAUSS, ON THE MTN TODAY, STRAUSS EXPRESSED GENERAL CONCERN AT THE DIFFICULTIES STANDING IN THE WAY OF RENEWAL OF THE MFA. ALTHOUGH HE WAS NOT FAMILIAR WITH THE DETAIL, HE UNDERSTOOD THAT THE UK WAS BLOCKING EARLY ACTION BY THE EEC COMMISSION. HE HOPED THAT WE WOULD BE ABLE TO ALLOW THE COMMISSION TO ENTER INTO BILATERAL NEGOTIATIONS STRAIGHTAWAY SINCE TIME WAS VERY SHORT AND
IT WAS ESSENTIAL FOR THE MFA TO BE RENEWED IF WE WERE TO AVOID GIVING A STIMULUS TO THE MOUNTING PROTECTIONIST PRESSURE IN CONGRESS.
2. THE DEPUTY STR, WOLFF, HANDED GENT THE NOTE IN MY IFT. THIS HAD BEEN PREPARED AS A SPEAKING NOTE FOR STRAUSS BUT HE CHOSE NOT TO GO INTO DETAIL. VOLFF EXPLAINED TO GENT THAT WITHOUT AN MFA THE US COVERNMENT HAD NO LEGAL AUTHORITY TO CONTROL TEXTILE IMPORTS FROM COUNTRIES OTHER THAN THOSE WITH WHICH THE US HAD ALREADY ENTERED INTO BILATERAL AGREEMENTS. IF THE MFA WERE NOT RENEWED THE ADMINISTRATION WOULD HAVE TO SEEK LEGISLATION FROM CONGRESS. ONCE TEXTILES GOT UP ONTO THE HILL QUOTE ALL BETS ARE OFF UNQUOTE, NOT ONLY WITH REGARD TO TEXTILES BUT IN OTHER AREAS CURRENTLY SUFFERING
FROM IMPORTS. GENT UNDERTOOK TO REPORT US CONCERNS.
3. PLEASE PASS ADVANCE TO ABRAMSON, DEPT OF TRADE. JAY
INTERNATIONAL TRADE
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CONFIDENTIAL