TNAG-0142-FCO40-178-Long-term-policy-on-International-trade-in-textiles-1969 — Page 186

2.

2.

CONFIDENTIAL

Textiles: Problems and Possible Solutions

207,

The principal problems arising in the near future appear to be (a) What line should be taken with regard to the

(b)

Long Term Arrangement on cotton textiles, when the

question of prolonging it beyond autumn 1970 comes

up for consideration at meetings of the GATT

Cotton Textiles Committee in September and October

of this year?

What course is the United States likely to take in

pursuance of President Nixon's election commitment

to do something to restrain textile imports?

We

This paper is principally concerned with the second problem.

have still to work out our line for the autumn meetings of the GATT

Cotton Textiles Committee. As a working hypothesis for the following

paragraphs, it is assumed that the Long Term Arrangement will be

continued for some time more or less in its present form.

3. The alternative lines along which the United States might seek to

deal with the pressures for restraint of textile imports appear to be

the following:

(1) Domestic action only e.g. development assistance to

hard-pressed particular sectors of their industry. (ii) Extension of the Long Term Arrangement to non-cotton

textiles.

(iii) Quota restrictions imposed either in accordance with

the provisions of Article XIX of the GAFT, or in

disregard of the provisions of the GATT.

CONFIDENTIAL

/(iv) Raising

is