[therefore
20.
A proposal on these lines ought to have a good run. We know that the Germans are not particularly keen on prolonging the L.T.A. and for that reason the Six would probably remain neutral. The Canadians are much more interested in restricting imports of mon- cotton textiles and their attitude would be determined by what we could offer in that direction. The Scandina- vian interest is also mainly in non-cotton textiles: as matters stand at present they evidently feel in a stronger position to ask for restrictions to be imposed on exports of m.m.f. shirts if the exporting country has previously agreed to impose restrictions on cotton shirts.
The Americans might find themselves in the unenviable position of having to argue the case for continuing the existing restrictions for a further period when what they are hoping to do is to persuade other countries to extend the restrictions to all textiles.
Enlargement of the C.T.A.
21.
The United States might be able to persuade some of the Asian producers to restrict exports of, e.g., shirts and sweaters to the United States, but under United States law she would not be able to impose restrictions on imports from these countries unless (1) the Tariff Commission had ruled that imports from the countries in question had caused injury to the domestic industry or (ii) the Contracting Farties had entered into a formal agreement, on the lines of the C.T.A., under which the United States could legitimately impose restrictions in the absence of agreement by the exporting country. The Tariff Commission has already rejected the industry's case for more protection, which in default of mandatory legislation leaves the American Government with little alternative but to propose an extension of the C.T.A. to all textiles. The probability is that such a proposal will be made at the meeting of the C.2.C. on 8-10th October and that a threat of mandatory legislation will be made/r force it through.
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