Enclosure 2
Possible Methods of Dealing with the Textiles Problem in ascending order of undesirability
Remarks
1.
2.
Do nothing and let things take their
course.
Adjustment assistance to those parts of the U.S. industry which are con- sidered to be particularly hit.
3. Export restraint on an item by item,
fibre by fibre, basis on a strict interpretation of an Article XIX- type situation.
A.
5.
6.
7.
8.
Some adjustment to the CTA (Articles 6(b) and/or 9 and possibly Article 1) to admit cotton-type m.m.f.
Article XIX import restrictions on a few individual products on a non- discriminatory basis.
A straight extension of the CTA to all textiles.
A new international arrangement similar to, but separate from, the CTA to cover other textiles.
"Voluntary" export restraints across a wide range of non-cotton textiles.
Unlikely in view of Mr. Nixon's commitment to the industry.
Rejected by Mr. Stans in his talks in Hong Kong.
The means adopted to deal with restraint requests so far, but would be difficult to operate on the strict basis under heavy American pressure.
This should be predicated on increased levels and the right to roll in with the relevant cotton items and should as far as possible be bargained against improvements in the terms of the CTA.
The final position of this possibility in the list would depend on the range and level of the restrictions.
With the provisos in 4 above.
We should lose roll-in, but this solution may appeal to the Japanese, who are the main suppliers of non- cotton textiles, for that very reason.
This would be the equivalent of a CTA 'Article 4-type' agreement without safeguards in negotiation or in implementation.
9. Tariff increases on a non-
discriminatory basis, but not with specific minima.
10. Article XIX import restrictions on
individual products on a discrimina- tory basis.
11. General import restrictions on a non-
discriminatory basis.
12. Discriminatory tariff increases.
13. Mandatory general import restrictions
on a discriminatory basis.
Commerce and Industry Department, Fire Brigade Building, Hong Kong. 20 August 1969
No comments yet.
Private notes are available after approval.